Dark Pools - volume
- Thread starter arna
- Start date
Dark pools aide in fraud and ponzi mechanism of trade between two parties.
Do you guys think traditional volume studies have been rendered ineffective due to the presence of dark pools in equities? In addition, are there "dark pool"setups in the futures space like ags, e minis or is volume reported on commodities in CME, CBOT,NYBOT more "real" than the equities side? Thanks.
Yes; by law, the well-known futures contracts must all trade on their particular exchange. In contrast, the equities side is massively fragmented with dozens of alternative execution venues (such as dark pools), not to mention the fact that brokers can trade against their own clients and/or sell "muppet" order flow to "wholesalers" such as Knight, distorting and obscuring the market, not to mention what it does to the quality of execution. This makes the equities market space much less clean/predictable than the futures space.