"Speaking at a WFE conference in Vancouver, Federation chairman William Brodsky, said: "We've allowed the technology and the evolution of these markets to run way ahead of the regulators' ability to understand them."

Hmmmmmm... First off let's just remind ourselves that 'dark pools' have been around for a while - what is new is that some genius thought up the wonderfully sinister name 'dark pool', which is now being used to scare the bejesus out of long-only investors. Brief glimpses of pre-trade quotes do not a 'lit' market make.

Dark pools are used to move large block orders in order to not move the market. And not moving the market is a good thing.

Now, as for technology and evolution running "way ahead of regulators ability to understand them" goes - are we talking about 'understanding' or avoidance?

An argument can be made that over the past decade the best minds at central banks and regulators have been recruited by investment banks with (then) deeper pockets in order to give them an advantage in dealing with troublesome regulations. But, please, regulators don't understand high-frequency trading, they don't understand dark pools? These guys weren't child care regulators; they didn't leave Ofsted for a plum role at the FSA.

I could believe that regulators looked the other way, when it came to the activities of global investment banks over the past ten years. I can even believe that many regulators lacked the age and experience needed to deal with the likes of Fuld and Blankenfield. But lacked understanding? That is a cope out.