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Dark Liquidity Pool

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Dark Liquidity Pool
A private securities exchange or trading platform. Dark liquidity pools do not publish the prices of their transactions, which allows investors to make larger transactions at lower cost than they might otherwise. Most traders in dark liquidity pools are institutional investors ? such as mutual funds or hedge funds ? that wish to protect the anonymity of their investments and/or investors. They also may not wish to cause price movements by the disclosure of their transactions. No dark liquidity pool is completely secretive: they must register with the SEC as either a securities exchange or a broker-dealer; they are governed by Regulation ATS, which stipulates certain transactions and prices that they must disclose under various circumstances. See also: Transparency.


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