Discussion in 'Trading' started by crgarcia, May 12, 2007.
Are dark pools legal?
The larger ones are owned by GS, MER, JPM, CSFB, and Leh!
Most firms also now have their own , as well.
I know for a fact NYFIX millenium, which was one of the first sold partnerships to all of the big firms.
What is illegal about a matching network, POSIT has been around for @ least 10 years.
The problem here is not the existence of these pools or their legality but the people who own them - big time thieves and manipulators - GS, ML, CSFB etc.
Instinet has been around for many years and the "dark pools" seem similar but I'm not sure how trades and volume are reported with dark pools. Are they reporting trades and volume to the tape within SEC/NASD guidelines? Are they reporting to the tape at all?
"Arranged trades" have also been around for a zillion years and aren't much different in practice and effect from dark pools.
I have to admit, though, I don't particularly like the practice. It's the further erosion of open, transparent public markets, IMO.
I stopped actively trading stocks a few years ago.
The beginning of the end was trading in 1/16's then pennies.
Now you have to worry about a few million printing or "trading" down a buck on Mars!
Sold to you,
"printing" rather than "trading" would aptly describe what is going on be it on earth or mars.
what are dark pools?
I looked for whether or not the volume traded in dark pools gets reported (does it show up on the daily volume of the traded instrument?) but the story does not mention yes or no.
Anyone know if the transaction data is completely suppressed?
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