Dark Liquidity Pool

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 Dark liquidity pools do not publish the prices of their transactions, which allows investors to make larger transactions at lower cost than they might otherwise.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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The LSE said that the trading platform, named Baikal, will offer a dark liquidity pool, which allows banks, hedge funds and institutional investors to trade shares in secret.
Under the terms of the agreement, Fidessa users are now able to access Instinet Japan's suite of algorithms, global DMA platform, and two dark liquidity pool platforms offered under the firm's Japanese PTS (proprietary trading system) license.
He continued: "We leveraged our flexible, multi-asset technology platform to bring a completely dark liquidity pool to listed options at an early stage of the market's electronic evolution.
aOne of the core value propositions that we were very specific about when we built the dark liquidity pool in the US was to provide a unique and differentiated pool of liquidity for our clients to interact with while giving them transparency around performance of the interaction,a Brian Fagen, head of equities electronic trading distribution, BarCap, said in an interview for the Q2 2010 issue of The TRADE.
MS POOL is a continuous dark liquidity pool that enhances crossing and price improvement opportunities for its clients by combining many sources of order flow into one aggregated pool of liquidity.
1 will benefit from innovative new ways to take advantage of the liquidity in SIGMA X, Goldman Sachs' crossing network and the largest US dark liquidity pool (Tabb Group, 2008), averaging 318 million US shares per day.
BIDS Trading has proven to be a viable dark liquidity pool with potential for significant further growth," said Bill Neuberger, Global Head of Product Development for Morgan Stanley Electronic Trading (MSET).
Unsurprisingly, algorithms with the most discretion to trade in dark liquidity pools show the largest improvement, with very significant savings in both our Implementation Shortfall and Sniper Algorithms.
And cross-network trading, including dark liquidity pools ('dark pools') has been increasing since 2006.
Dark liquidity pools do not display quotes, but match orders anonymously instead to minimise the market impact of large trades.
NEW YORK -- Morgan Stanley today announced the introduction of NightOwl(SM), a new electronic trading tool that navigates select dark liquidity pools and quoted markets to provide clients with access to the most natural liquidity possible.
The fragmentation of the equity markets has produced exponential growth in dark liquidity pools, and this new fragmented market created difficulties for the buy side and sell side to efficiently locate liquidity," said Dan Mathisson, Managing Director and Head of Advanced Execution Services (AES) "Our goal is to solve market participants' frustration with fragmentation by creating partnerships that enhance access to liquidity while continuing to provide anonymity.