Abstract
LL.M. (Commercial Law)
The focus of this minor dissertation is to critically analyse the regulatory response to
the alternate trading platform of dark pools of liquidity by looking at its background,
challenges, benefits and concerns. Attention is afforded to the response from a holistic
global perspective by analysing the IOSCO principles. There is thereafter a focus on
jurisdiction-specific regulations from the United States of America against which the
current South African regulatory landscape on market conduct is juxtaposed.
In analysing the various principles, regulations and enforcement actions, it is found
that the regulatory approaches are primarily pragmatic in nature with both the United
States of America and South Africa taking a conciliatory approach in drafting
regulation by consulting with industry experts. In addition, both countries have
implemented laws requiring stronger governance and surveillance procedures. It is
found that this approach will facilitate more versatile regulations that are able to keep
up with innovation.