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FSA looks into dark pools

CITY watchdog the Financial Services Authority (FSA) yesterday launched a probe into how UK equity markets are used, with a special focus on the way in which so-called &ldquo;dark pools&rdquo; and &ldquo;high frequency&rdquo; traders operate.<br /><br />The news comes as financial regulators around the globe come under pressure to step up scrutiny on the industry, especially as competition over trading technology rapidly develops.<br /><br />&nbsp;&ldquo;Dark pool&rdquo; trading is a facility which allows big blocks of shares to traded at prices which aren&rsquo;t posted until after the trade.<br /><br />And &ldquo;high frequency&rdquo; trading is done on high-tech computer programmes, allowing breakneck speed trading.<br /><br />The study is being run by staff at the FSA, led by chairman Adair Turner, and City veteran Henry Knapman of UBS. The US has already launched its own investigation.