dark pools of liquidity

Discussion in 'Prop Firms' started by thisguy, Jul 11, 2007.

  1. thisguy


    Can a smaller prop shop access liquidity from "dark pools" trading between 300k - 1M shares a day?

    If so, do people have suggestions about which pools to access? Some articles I have read suggest there are nearly 40 around, whereas there were only four one year to eighteen months back.

    How do people feel about the $0.02/share cost structure?

  2. I would think they would welcome the liquidity. I work on a mutual fund trading desk where we use Pipeline and are very happy with it.
  3. thisguy


    Can you tell me about Pipeline?

    Is it a forum where prices are determined based upon current market (i.e. mid bid-ask spread, etc.) I'm not sure how quickly the dark pools with negotiated prices act. Prop firms might be trading 5k or 10k at a time per symbol vs. 35M for a hedge fund so negotiating vs. taking an order at/near market instantaneously shouldn't ne necessary.

    Then again, I could be over thinking this process of matching buyers and sellers in dark pools.

    Anyone here work for one of the dark pools? Anything to add?

  4. Yes, pipeline is nice.

    OP, You should be able to use them for .02 no problem.

    I also access GS internal SigmaX and it scrapes efficiently. Also for .02 or less.
  5. thisguy


    Thanks for your comments.

    If you think of other pools one might access let me know. Am most concerned with getting quality fills of less liquid markets with wide bid-ask spreads and large slippage. Size in question wouldn't be too large, so may be not what some dark pools are interested in.

  6. Most major prime's that props clear thru allow access to their and other darks (Sigma-X, Knight, etc.).
  7. Checkout Lehman's LMX this was the stuff they acquired for TAL
  8. thisguy


    Appreciate the suggestions. Will look into all the dark pools people suggest.

    BTW, how do people feel about NYFIX, Instinet, LiquidNet, CrossFinder, and Cross Stream? These are all groups that have been mentioned to me not mentioned in this thread.

  9. NYFIX? You might want to google that one.
  10. We can always take stock from the dark pools, and will be able to park orders there very soon,via Goldman.


    #10     Jul 11, 2007