Dark pool: Difference between revisions
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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) |
imported>Doug Williamson m (Link with MiFID page.) |
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[[Category: | [[Category:Corporate_finance]] | ||
[[Category: | [[Category:Compliance_and_audit]] | ||
[[Category: | [[Category:Manage_risks]] | ||
Revision as of 06:38, 4 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).
