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Dark Pools - End of Trading As We Know It?
- Thread starter ShoeshineBoy
- Start date
I think it is a very troubling development. I assume it is more expensive to execute a trade on a dark pool, so the only reason to do it would be to avoid showing your size to the markets. That means that we will gradually see fewer and fewer stocks having decent volume to day trade, but the ones that do will show exponentially increased volume. Kind of like we're seeing with ETFs like SKF and DUG right now. An institution can move all the size they want on SKF. The thing freezes my system in the morning when it is jumping.
Another ramification may be that individual stocks become even more controlled by sector movements.
Another ramification may be that individual stocks become even more controlled by sector movements.
ok, let me get this straight...
if a huge block fills through a dark pool, does it get printed at the end of the session or never at all?
The talking heads will need to report.
Today, IBM traded a shitload of shares...maybe, we're not sure exactly ..and closed at who the fuck knows.
if a huge block fills through a dark pool, does it get printed at the end of the session or never at all?
The talking heads will need to report.
Today, IBM traded a shitload of shares...maybe, we're not sure exactly ..and closed at who the fuck knows.
If I've got this straight, we won't see all the volume, or trades, but I've got to think that by some mechanism, some form of arbitrage, the prices will be in line between visible and dark.
So, it may be the end of the type of trading we do, but not the end of some diff type of trading.
I guess it's adapt or die.:eek:
So, it may be the end of the type of trading we do, but not the end of some diff type of trading.
I guess it's adapt or die.:eek:
So far, my brother loves these pools...gets him price improvement etc. a lot of the time.
FWIW,
Don
FWIW,
Don
Quote from slidertrader:
C'mon guys - give me a break.
Where I come from, inefficient pricing = opportunity for traders.
Either way - Reg NMS still exists, which means that if a print is going to occur on one of these dark pools, the pool still has to ensure that there is not a better price available elsewhere. If there is, they have to take that liquidity first.
No matter what happens in the future, one thing I'm sure of is there will be plenty of opportunity for those willing and able to adapt.
I agree with new maybe even better opportunities if willing to adapt.
Aside from all that, it makes me wonder if the commoner placing a long term buy is getting a fair price if half of the data is hidden from him. Seems like any possible unfairness would be stopped some years down the road. Even the perception of unfairness, shorting for example sends up rules, regs, restrictions.
Stock from a publicly held corporation listed on a stock exchange, traded mostly privately and secretively....
If 75% of the volume is generated from institutional trading and it all leaves the exchanges....
One could look at it this way.....
The majors want it all......
Before, one had to buy from a marker maker or specialist......who of course was compensated....and owned by the majors.....
Then comes along the ECN who creates further efficiency, while taking some of the pie. Just ask the NYSE how much they like BATS. BATS is just a hand full of people, good software, and some computers.......
The dark pool does not like to give the ECN any pie, if it can it eats the whole pie all alone.... So in one way the dark pool is just another form of competition to the ECNs....
Actually this is cool, because this also prompts BATS to seek pie elsewhere....as it is currently doing in Europe. There is currently a lot of pie in the Euro market in that they still have high commissions and markups. BATS is going to change that.
This is why I want to see a more uniform market data highway that collects all the venues....to be made possible by companies such as BATS....to take trading to the next level....
Why now....just look at ARCA the leader who made the NYSE bow down to efficiency....and because of the fact that the NYSE did not go full blown electronic at the onset ....immediately lost out to those who dared to become efficient.
It is not likely that the world's marketplace becomes a singular dark pool.....It is much more likely that the world's markets will be dominated by more BATS....and if other types of pools are in play....they will be second to the BATS.......
GO BATS...of the world....
Then a professional trader will be seeing a seemless trading venue to all the world's markets at almost no transaction costs....and may even be paid for bringing liquidity....
A universal seamless smokin electronic stock exchange can be good medicine for the world's socialistic ills.....
And remember that big ships are hard to turn around....much to the advantage of well built speedboats......
The majors want it all......
Before, one had to buy from a marker maker or specialist......who of course was compensated....and owned by the majors.....
Then comes along the ECN who creates further efficiency, while taking some of the pie. Just ask the NYSE how much they like BATS. BATS is just a hand full of people, good software, and some computers.......
The dark pool does not like to give the ECN any pie, if it can it eats the whole pie all alone.... So in one way the dark pool is just another form of competition to the ECNs....
Actually this is cool, because this also prompts BATS to seek pie elsewhere....as it is currently doing in Europe. There is currently a lot of pie in the Euro market in that they still have high commissions and markups. BATS is going to change that.
This is why I want to see a more uniform market data highway that collects all the venues....to be made possible by companies such as BATS....to take trading to the next level....
Why now....just look at ARCA the leader who made the NYSE bow down to efficiency....and because of the fact that the NYSE did not go full blown electronic at the onset ....immediately lost out to those who dared to become efficient.
It is not likely that the world's marketplace becomes a singular dark pool.....It is much more likely that the world's markets will be dominated by more BATS....and if other types of pools are in play....they will be second to the BATS.......
GO BATS...of the world....
Then a professional trader will be seeing a seemless trading venue to all the world's markets at almost no transaction costs....and may even be paid for bringing liquidity....
A universal seamless smokin electronic stock exchange can be good medicine for the world's socialistic ills.....
And remember that big ships are hard to turn around....much to the advantage of well built speedboats......