Dark pool

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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.

Some definitions of 'dark pool' exclude broker crossing networks and the like (1. above) and restrict the definition to the second type (2. above).

See also