NEW YORK: JPMorgan Chase & Co has begun trading on a new private stock trading venue, or “dark pool,” that lets its clients use the bank’s algorithms to buy or sell stocks at a benchmark price reached over a period of time. Trading in the new dark pool, known as JPBX, began the week of July 17, according to data from the Financial Industry Regulatory Authority. The move comes at a time of increased regulatory scrutiny of dark pools that has led to a number of trading venues being shuttered, and highlights JPMorgan’s efforts to expand its equities business. JPMorgan’s securities unit also runs JPMX, a dark pool that matches shares in a more traditional manner, within the spread of the best bid and offer prices shown on public stock exchanges like those run by Nasdaq Inc or Intercontinental Exchange Inc’s New York Stock Exchange. Brokers looking to get benchmark pricing for their orders can access the new dark pool through JPMorgan’s algorithms. For instance, a broker might have an order for 5,000 shares to buy while another broker has an order for 2,000 shares of the same stock and wants to get the volume-weighted average price. JPBX will lock up the 2,000 shares on both sides for say, two minutes, and then execute at the average price of the stock over the previous two minutes. Published in Daily Times, August 16th 2017.