(Bloomberg) — BNP Paribas SA is closing itsdark poolbusiness in Hong Kong in December as tougher rules kick in, according to a person familiar with the matter.
BNP Paribas Securities (Asia) unit in Hong Kong will stop running its internaldarkliquiditypooltrading services from next month amidan evolving regulatory environment, the person said, asking not to be identified as the decision isnt public. Client orders will be sent directly to the exchange for execution, the person said.
Hong Kong will get a tougher regime fordarkpools from Dec. 1. Bank-operated trading venues provide the only alternative to Hong Kong Exchanges & Clearing Ltd., which enjoys a monopoly over on-exchange equity trading. BNPs local unit was fined HK$15 million ($1.9 million) by Hong Kongs financial regulator in August for breaching rules that set out how itsdark poolshould operate. The brokerage treated all orders as having equal priority between November 2009 and April 2011, when it suspended operations, the Securities and Futures Commission said at that time.
Lilian Goh, a Hong Kong-based spokeswoman at BNP, declined to comment. Reuters reported the planned closure earlier Friday.
