Daily rate and Dark pool: Difference between pages

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imported>Doug Williamson
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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)
 
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The daily rate of interest (or yield) is a quoting convention for the simple interest ''nominal annual rate'' for compounding once per day.
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:  
'''Example'''
#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.
The quoted daily rate is 5.11%.
 
The amount of interest compounded daily is:  
 
5.11 / 365
 
= 0.014%.
 
 
Not to be confused with the ''annual effective'' rate, which in this case would be:
 
1.00014<sup>365</sup> - 1
 
= 5.24%.




== See also ==
== See also ==
* [[Annual effective rate]]
*[[Lit]]
* [[Compounding effect]]
*[[Broker crossing network]]
* [[Nominal annual rate]]
* [[Periodic rate of interest]]


[[Category:Manage_risks]]
[[Category:Equity]]
[[Category:Regulation_and_Law]]
[[Category:FX_Risk]]

Revision as of 14:38, 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:

  1. Systems such as broker crossing networks that are not subject to pre-trade transparency requirements
  2. Trading venues such as regulated markets and MTFs that use waivers from pre-trade transparency not to display orders.


See also