Nine fund groups join forces to form equity trading 'dark pool'

Nine of the world's biggest fund managers are preparing to set up their own 'dark pool' for equity trading in an effort to avoid interference from high frequency traders.

The project, led by Fidelity and supported by eight other large fund management groups, is expected to launch in the second half of the year, according to the Financial Times. The dark pool will be a trading exchange available for exclusive use by the largest fund groups, away from the influence of high frequency traders and out of sight of the general public. Fidelity will own 60% of the venture, while the remaining eight groups - BlackRock, Capital Group, MFS, Invesco, T Rowe Price, J.P. Morgan Asset Management, State Street and Bank of New York Mellon - will each have a 4.9% stake,...