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IIROC has undertaken a study of the impacts of the Dark Rule Amendments implemented on October 15, 20121 using IIROC’s database of confidential regulatory market data, consisting of all orders and trades executed on all Canadian equity markets. The regulatory objective of this change was to establish a framework that recognised the contribution of dark orders to the post-trade price discovery process and their value to certain investors, while balancing this against the need to protect pre-trade (lit market) price discovery, ensure meaningful price improvement and establish a level playing field between transparent marketplaces and dark pools.As expected, there was an immediate and dramatic decline in dark trading on October 15, 2012. While some marketplaces have since increased their market share, dark trading ingeneral has not returned to previous levels.
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