Talk:Dark pools of liquidity

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who uses dark pools

Citing the article:

Dark pools of liquidity (also dark pools or dark liquidity) are crossing networks that provide liquidity that is not displayed on order books. This is useful for traders who wish to move large numbers of shares without revealing themselves to the open market.

Now citing the crossing network article:

A crossing network are alternative trading systems (ATSs) that match buy and sell orders electronically for execution without first routing the order to an exchange or other displayed market, like an

Electronic Communication Network (ECN) that displays a public quote. Instead the order is either anonymously placed into a black box or flagged to other participants of the crossing network. The advantage of the crossing network is the ability to execute a large block order without impacting the public quote. However, since the crossing network executes without displaying information to the market, the network must match the order at the midpoint of the National Best Bid and Offer (NBBO)

.

Alternative Trading Systems (ATS) are

SEC-approved non-exchange trading venues. They play an important role in public markets for allowing alternative means of accessing liquidity

.

Now I would need to look up "trading venue", I guess, but I can't. I don't believe anyone who reads all of this without prior knowledge of what a dark pool or crossing network is will emerge any wiser. Please describe what a dark pool is in concrete terms: what concrete or legal form it has, who creates it, how it functions and what consequences its existence has (and be more specific as to what it is good for). --Gro-Tsen (talk) 16:02, 5 November 2008 (UTC)[reply]

Not only is it unclear, but it may not be completely accurate. I have been digging into this a bit because, it is my impression that DARK POOL transactions MUST be reported on the consolidated tape, which is then reported to the SEC. I will be digging a bit more. I have developed an initial write-up that I am trying to expand with better references, I will add some of the information here please help me find some better references. ^[1] --Q. Boiler (talk) 04:23, 30 October 2009 (UTC)[reply]

I am baffled as to how such a private trading system could be allowed to operate in competition with a "Sunny Pool", and exactly how long it takes for Dark trades to reach the consolidated tape (if ever).

How, exactly, and for whom? Dark pools appear to put the majority of individual investors at a big disadvantage: If many funds are to "line up and move large blocks of equities", for example dumping their holdings - then information about this needs to be available. —Preceding unsigned comment added by 87.222.126.172 (talk) 08:56, 6 November 2009 (UTC)[reply]

The article goes too far away from what it is by focusing on what impact it has. So I add a section what you can see from a dark pool. Jackzhp (talk) 19:01, 14 September 2010 (UTC)[reply]