Goldman shutters Canadian "dark pool" trading ops

Fri Apr 27, 2012 7:42pm EDT
 

TORONTO (Reuters) - Goldman Sachs (GS.N: Quote) is shutting down its Canadian "dark pool" trading operation less than a year after it was launched by the U.S.-based investment bank, according to a notice from an industry regulator.

Goldman launched its "Sigma X" dark pool operation last August. Dark pools platforms allow big players to place and match buy-and-sell orders anonymously to avoid tipping off rivals and moving share prices.

A notice from the Investment Industry Regulatory Organization of Canada, titled "SIGMA X Canada to Cease Operations as a Marketplace", said that the service would cease accepting orders as of the close of trading on Friday.

A company spokesman did not immediately return calls.

Sigma-X was one of a handful of alternative trading system in Canada, where equity trading is dominated by the Toronto Stock Exchange, owned by TMX Group X.TO. TMX is currently the target of a $3.8 billion takeover bid by a group of 13 Canadian financial institutions.

(This story clarifies to note statement on Sigma X was from industry regulator.)

(Reporting By Cameron French; Editing by Leslie Gevirtz and Jeffrey Hodgson)