Dark pool: Difference between revisions
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imported>Doug Williamson (Create the page. Source: EC Euoropa Glossary http://ec.europa.eu/internal_market/securities/docs/glossary_en.pdf) |
imported>Doug Williamson (Source: EC Europa Glossary: Broker crossing networks do not show an order book, and as noted above, simply aim to match orders; due this nature they are sometimes compared to Dark Pools, which have similar characteristics. http://ec.europa.eu/inter) |
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Dark pools can be split into two types: | Dark pools can be split into two types: | ||
#Systems such as [[broker crossing network]]s that are not subject to pre-trade transparency requirements | #Systems such as [[broker crossing network]]s that are not subject to pre-trade transparency requirements. | ||
#Trading venues such as [[regulated market]]s and [[MTF]]s that use waivers from pre-trade transparency not to display orders. | #Trading venues such as [[regulated market]]s and [[MTF]]s that use waivers from pre-trade transparency not to display orders. | ||
Some definitions of 'dark pool' exclude broker crossing networks and the like (1. above) and restrict the definition to the second type (2. above). | |||
Revision as of 15:33, 2 August 2014
Dark pools are trading systems where there is no pre-trade transparency of orders in the system (ie there is no display of prices or volumes of orders in the system).
Dark pools can be split into two types:
- Systems such as broker crossing networks that are not subject to pre-trade transparency requirements.
- Trading venues such as regulated markets and MTFs that use waivers from pre-trade transparency not to display orders.
Some definitions of 'dark pool' exclude broker crossing networks and the like (1. above) and restrict the definition to the second type (2. above).
