NYSE Euronext announced today that it will give NYSE Arca clients access to dark liquidity by routing orders to select broker-dealers and alternative trading systems, offering non-displayed quotes and aggregated liquidity. NYSE says the service, which is rolling out with 29 destinations, will increase the potential for price improvement and give clients access to far more routing options than competitorsâ offerings. The company declined to name the participating venues. âProviding easy and efficient access to these diverse, non-displayed liquidity venues is an extension of our commitment to offer the greatest array of services to our clients,â Lawrence Liebowitz, group EVP and head of U.S. markets and global technology at NYSE Euronext, said in a statement. âBy linking more market participants than any other exchange, we are reducing fragmentation and offering our clients greater speed, better prices and equality of access to liquidity.â
Nasdaq announced a week ago that their ECN will be able to route to Dark Liquidity Pools in the begining of April. http://www.nasdaqtrader.com/TraderNews.aspx?id=HTA2008-025
Any ideas how this will affect the NASDAQ opening/closing crosses? Will the other books now interact with the cross?
This is a very big deal in my opinion. Theoretically, well-priced orders on the dark pools will get filled much faster. Has anyone noticed any differences on Millenium, pipeline, or ATD yet?
They are crossing networks that provide liquidity that is not displayed on exchange order books. It is mostly useful for traders who wish to move large numbers of shares without revealing themselves to the open market. For example a firm I use to work for use to run their own crossing network where other major firms connected. when retail and institutional clients made trades we would check our internal crossing network to match trades if not then we routed it out to the exchanges. See ITG PosIT, NYFIX Millennium, Lehman's LCX etc..