Dark Pool
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Paradoxe de la crise ou simple effet collatéral imprévisible ? Alors que les régulateurs s'efforcent de rendre plus transparent le shadow banking system en l'intégrant au système financier officiel, notamment en s'efforçant de rapatrier les transactions de gré à gré sur des marchés organisés avec chambres de compensation, il semblerait que la directive MIF ait bien involontairement favorise l’essor inquiétant d’un shadow market system . L’objectif initial de la directive MIF était de supprimer le monopole des marchés réglementés nationaux sur les transactions boursières en actions en suscitant la concurrence de plates-formes de transactions alternatives ou multilateral trading facilities (MTFs). Moins de trois ans après son entrée en vigueur en Europe, la MIF a effectivement permis le développement de nombreux lieux d’exécution alternatifs aux bourses traditionnelles – MTFs et internalisateurs systématiques [1] – mais aussi l’émergence des dark pools .
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Dark pools of liquidity - Wikipedia, the free encyclopedia
In finance, dark pools of liquidity (also referred to as dark liquidity or simply dark pools ) is trading volume or liquidity that is not openly available to the public. [ 1 ] The bulk of these represent large trades by financial institutions that are offered away from public exchanges so that trades are anonymous. The fragmentation of financial trading venues and electronic trading has allowed dark pools to be created, and they are normally accessed through crossing networks or directly between market participants. One of the main advantages for institutional investors in using dark pools is for buying or selling large blocks of securities without showing their hand to others and thus avoiding market impact as neither the size of the trade nor the identity are revealed.Few things on Wall Street are as secretive and mysterious as "Dark Pools" - stock crossing networks that provide liquidity not displayed in market order books. The biggest implication of this is that an outsized bid can be matched up with an offer in a private transaction without disclosing the transaction at all. Traditional financial markets generate liquidity by openly advertising buy and sell interest in a given venue, with real time liquidity data provided by publishing market depth (think Level 2). Dark Pools, or Dark Liquidity, as they are sometimes known, have been used more and more by brokers and funds in transacting off market in increasingly greater volume. Some markets allow dark liquidity to be posted inside the existing limit order book alongside public liquidity, usually through the use of iceberg orders. Iceberg orders generally specify an additional display quantity, smaller than the overall order quantity.
Wall Street's Secretive and Dangerous Dark Pools
It’s a line I’ve wanted to use in conversation for a long-time but never found the opportunity and now here it is: “look deep into my dark pools”. No, I haven’t made a mess or done something socially unacceptable. I’m just looking at the latest trading phenomena where buyers can place large trades into a market exchange and they sit there until sellers offer a good enough price for the volume. Some people believe that dark pools are a worryingly new phenomena but it is not.
The Financial Services Club's Blog: Look deep into my dark pools
Dark pools are venues where trading is done off of an exchange to obtain price improvement and not move the price if a large block of stocks is being traded. While the term dark pool conjures up visions of dark alleys and one broker passing another broker stocks in a silver suitcase, they can be helpful for moving tough-to-trade securities. Still, why should dark pools matter to you?
Don't Be Afraid Of The Dark Pools - Forbes.com
Dark liquidity pools may sound like something out of science fiction, but they're real. And they're already spreading throughout Wall Street. These pools are basically internal systems for trading stocks privately, off of public exchanges and out of the public eye.
Dark Pools Grow Scrutiny Does Not - News Markets - Portfolio.com
Goldman Now Dominating Dark Pool Trading; Who Is Sigma X?
The last time I discussed dark pools , it was in the context of SEC regulation due to the increasing sense of opacity of what happens in this subset of the stock market. A new Reuters article adds fuel to the fire, indicating that not only are dark pools aggressively taking away from exchange trading action, but it is in fact bank-run dark pools that are the primary culprit. "Dark pools," where orders are anonymously matched so that traders do not alert the wider market to their intentions, have triggered concerns that stock pricing may not be transparent. But the growth of those run by broker-dealers such as Goldman Sachs and Credit Suisse are squeezing other "dark" electronic trading venues, as well as exchanges, resulting in lower fees. "The dark pools are definitely going to grow; the wild card is any new regulation," said Dmitri Galinov, director and head of liquidity strategy at Credit Suisse's advanced execution services, running the bank's CrossFinder dark pool.
Goldman Sachs Responds To Dark Pool Impropriety Allegations
It is good that Goldman at least acknowledges the issue of perceived " dark pool"/Sigma X impropriety. I hope Mr. Ed Canaday can now respond in a comparable fashion to the Zero Hedge queries about Program Trading/ SLP issues presented here over the past 2 months: after all such disclosures would go a long way toward increasing " transparency, confidence in our industry, and the understanding of our complex market structure ." We live in a complex world where technology is driving the evolution of market structure at an exponentially increasing pace. Improved technology has fostered greater competition, lowered barriers to entry for new participants, and increased the total amount of liquidity available in the market.Trading in a Dark Pool? Watch for Sharks - MarketBeat - WSJ
The proliferation of alternative electronic stock exchanges known as dark pools puts institutional investors at higher risk of shark encounters . Don’t let it happen to you. (Wikipedia) Dark pools find matches for blocks of shares without publishing the orders or the identities of the institutions.
dark pool : Le trading haute fréquence poursuit son essor en Eur
Paru le 21/02/2012 L'interdealer broker suisse Tradition, partie intégrante de Compagnie Financière Tradition, et le groupe de services financiers nippon Nomura ont décidé de s'allier pour innover sur le marchés des fonds indiciels cotés (ETF ou trackers). Les deux partenaires annoncent le lan... Il est probable que la ?
Dark pools : Les bourses occultes ont le vent en poupe
Array. Array. Dark pools : Les bourses occultes ont le vent en poupe - LMOUS Imaginez des places boursières privées, sans régulation, sans contrôle, où les ordres d'achat et de vente seraient anonymes.Regulation
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Liquidity
Optimizing dark pool liquidity by Advanced Trading
Jim Leman is managing director and principal of Westwater Corp., a New York-based management and technology consulting firm focusing on the financial services industry. Before becoming head of Westwater's Capital Markets Practice, Leman was head of programme and algorithmic trading initiatives at HSBC Securities. Prior to that, he was president of SunGard BRASS and was managing director of Electronic Trading and Connectivity at Citigroup.Dark Pools' Role In Liquidity Provision
The same "liquidity providers" that have been discussed previously in Zero Hedge, are also in dark pools to make sure trading costs are shifted from observable to less observable or not directly observable. Observable trading costs are the difference from VWAP, open price or arrival price + commission and spread costs. Less observable are bid/ask drift before a dark pool print. For example if I put an order to buy 100k shares of IBM to POSIT , UBS, or GS (especially the latter two where prop traders are more than happy to get right of first refusal on the bid/offer if they so desire) the stock might move up about 10 cents (not an actual observation) and than print my block.SmartPool’s dark data tool to help traders find liquidity | The
SmartPool, the pan-European dark pool operated by exchange group NYSE Euronext, has unveiled plans to launch MatchView, a post-trade analytics and data consolidation service for non-displayed trading venues. MatchView has been created in partnership with ioinet, the indications of interest and liquidity discovery tool purchased by NYSE Euronext’s technology unit NYSE Technologies when it acquired trading solutions provider NYFIX last year. The service, which is slated for launch in Q2 this year, will give traders real-time access to consolidated post-trade dark pool data and the ability to use the data in conjunction with their existing desktop applications.March 15 (Bloomberg) -- NYSE Euronext ’s SmartPool European block trading system will introduce a service to allow traders and fund managers to view and interpret post-trade data from dark pools as regulators call for greater transparency. SmartPool, a dark pool that the world’s largest stock exchange owns with BNP Paribas SA , HSBC Holdings Plc and JPMorgan Chase & Co. , will offer its MatchView product from the second quarter, Lee Hodgkinson , chief executive officer of London-based SmartPool, said in an interview. The service will initially offer access to post-trade data from SmartPool, before being extended to other alternative trading systems and dark pools in the region, he said. The product will offer “real-time access to all post-trade executions published by dark pools,” Hodgkinson said. “MatchView will enable traders and other market users to compare actual traded dark volumes across pools as soon as the trade is published.
NYSE Euronext’s SmartPool to Introduce Dark Pool Data Service -
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