Dark Pools are total garbage. Fair, transparent markets benefits everyone.
Are dark pools legal?
- Thread starter crgarcia
- Start date
That's the point of Reg NMS. Small retail traders are treated the same as institutional traders.
Block traders are concerned with VWAP, not the best price. If sellers see large buy orders on the book, they would probably hold out higher prices. Ultimately, added trading costs for institutions hurts individual investors in their funds. The result is an increasing number of funds that move offshore.
Dark Pools are indeed reported to the NASD system. It's a major regulation. Look up NASD ACT
My understanding of the topic is not deep but I know that in dark pool you pay commission. I heard it was up to 5 to 6 cents a share. The article mentions 2 cents.
I also believe that dark pool reduces the volatility in the market. Dark pool trades are recorded in the stock exchange but they are just for different customers. Bid and ask orders are also not recorded. The trades are done by middlemans.
I also believe that dark pool reduces the volatility in the market. Dark pool trades are recorded in the stock exchange but they are just for different customers. Bid and ask orders are also not recorded. The trades are done by middlemans.
