If according to you all limit orders in dark pools had to be reported and had to show up in the NBBO and consolidated book then you would see massive amounts sitting at certain levels At times. I don't see any such orders in the consolidated book.
Not at all what I am saying. Let me be more clear: Dark pools have the capability to display or hide orders that are sent to them, depending on the broker's instruction and the guidelines under Reg ATS. A Smart-routing system is designed to provide Best Execution for customer orders. Hiding an order from the National Market System seems like such a straightforward violation of Best Execution that I remain doubtful that IB, or any broker, engages in this practice unless directed to do so by the customer.
Could not disagree with you more. Again I repeat myself when I say that the whole intent of dark pools is to fly under the radar (And of course for the operators to receive a wealth of information). Dark pools can and often are the best way to have certain types of orders filled. A national market system actually means next to nothing in its current form. executions do not happen on any national market system but specific exchange venues.
Hi, does it mean that the offer of a client doesn't get forwarded to the order book of the exchange, instead gets filled (or not) from IB's internal order book? Btw, what's the purpose of the mentioned "dark pool"? Isn't that illegal? Could someone please summarize this case for Average Joe's like me. Thx.