Okay I need to hear some chatter about this...it's disturbing to say the least: http://www.marketwatch.com/news/sto...D71-43C9-ADD2-59C6B9E3C5D1}&dist=MostReadHome This excerpt is enough to get me running to the toilet to puke: "Small investors are benefiting from these pools of liquidity," said Harvey Pitt, a former chairman of the SEC who now runs a Washington-based consulting firm. "The institution reflects the individual."
Thanks for the post. I have been trying to find specific, detailed information on how different dark pools operate (order entry, negotiation, fees, access, etc.) without much luck. If anyone knows a source for information beyond generalities, a point in the right direction would be much appreciated.
This says it all, competive forces are good for everyone. There was consolidation," Mahoney said. "It came down to who had the better tools, the best functionality, pricing and fill rates. It's the same everywhere. Mass chaos literally transformed the way the markets were run and now they're infinitely more efficient."
I don't understand how they can get much better prices at a dark pool. The seller (when buying) won't sell you his stocks for much less than the current market price, even if he gets anonomity. There are always fools at the beginning of everything, but, in the long run; prices will almost equal the exchanges. When this happens, the only benefit will become anonomity.
IMO, this is a horrible development for the individual trader. If millions of shares are transacted "off market" then prices could either drop or spike suddenly, or cause an incredible lack of volatility. This is so unfair to the average trader, it's not funny.
Don't worry bro, according to the Dark Pool Overlords since institutions work for individuals in a way it's good for individuals...same logic that makes the Dow go up on bad news and go up more on worse news!
I had earlier started another thread on this topic. c.f.: http://www.elitetrader.com/vb/showthread.php?threadid=93808