Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,444,875 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Dark Liquidity Pools

    0.01 sec.
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 Dark liquidity pools do not publish the prices of their transactions, which allows investors to make larger transactions at lower cost than they might otherwise.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.

Dark liquidity pools. Dark liquidity pools are private alternative trading systems or platforms. Prices aren't published, and participants can make anonymous trades faster and at a lower cost than they can on a public exchange.

Most dark-pool transactions are between institutional investors, including mutual funds and hedge funds, which trade in large volumes. Their interest in anonymity is either because they want to protect the privacy of their investment choices or because they fear a major transaction could move the markets by triggering copycat trading.

Dark liquidity pools must register with the Securities and Exchange Commission (SEC) as either national securities exchanges or broker-dealers. The broker-dealers must follow the rules laid out in SEC Regulation ATS, which governs fair access and a requirement to publish prices for trades in certain securities under specific circumstances.



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
And cross-network trading, including dark liquidity pools ('dark pools') has been increasing since 2006.
New Algorithm Will Simultaneously Navigate Select Dark Pools and Quoted Markets to Provide Clients with Access to the Most Natural Liquidity Possible 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.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.