Dark Pools taking business away from the exchanges

B

BlueStreek

How much better in regards to pricing are sales getting in these investment bank pools of liquidity, is this sort of like huge block trades between two parties off the exchanges that you sometimes see run across the time and sales that are well below current market prices?

Anybody work at an investment bank that has access to these pools care to elaborate? Thanks
 
I dont work at an I-bank but I often use DVP as a way of executing a trade. The fills are very good, often MUCH better than anything I could get myself by going to the exchange, especially in thinnly traded issues.
 
BRANDONF

HOW many delivery vs. payment accounts do you open, and with which broker/dealers?

What are the costs associated with setting these up? Thanks
 
Quote from BlueStreek:

BRANDONF

HOW many delivery vs. payment accounts do you open, and with which broker/dealers?

What are the costs associated with setting these up? Thanks
More...

There are no costs to setting up a DVP account with away brokers. You just need a PB account.
 
Quote from BlueStreek:

BRANDONF

HOW many delivery vs. payment accounts do you open, and with which broker/dealers?

What are the costs associated with setting these up? Thanks
More...

It does not cost anything to setup, you simply have to have a relationship setup and a broker that allows them. I've done most of mine with Cantor Fitzgerald and the cost is variable depending upon what I'm asking for them and what they contributed to the trade. They have a very good desk for trading small cap NYSE stocks.
 
Evidently IB feels they are worthwhile and competitive - Here is an extract from another recent thread:

SMART, as it appears as an exchange where a trade took place, actually represents any number of dark pools of liquidity that IB has access to. These dark pools charge different amounts for taking liquidity, but all of them are less than what would be charged at any exchange or ECN. We recently added a new pool, which unlike the others we have, charge for taking liquidity.

Jack
 
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