Using dark pools to exit?

Discussion in 'Order Execution' started by TokyoGhetto, Jun 19, 2009.

  1. I have a question regarding dark pools and exiting positions.

    Example :

    BAC is trading at 13.05 x 13.06

    I go long a sizable position and the market trades higher.

    BAC is now trading at 13.09 x 13.10

    Now at this point I post up my offer to exit my longs at 13.10, but so is the rest of the market. The market is now heavy on the offer side and it looks like BAC is going to go trade lower.

    Could I use a dark pool such as cross finder to post my offer at the midpoint, there by stepping in front of all the offers on the open book, and getting filled faster at the offer. is it even possible to get filled at the half cent point in a dark pool, when the spread on a stock is 1 cent?

    Should I just leave my offer on the open book and hit the bid to exit before the market trades lower?

    Do any dark pools offer rebates for posting liquidity?

    BAC is one of the most liquid stocks on the NYSE, I believe that I would get filled in a dark pool regardless of the price.

    Have I just explained an exploitable edge and just delete this thread?
  2. tredar


    don't worry. you have not.

    i know of no dark pool rebating for crossing at the midpoint.