Rise of dark pools?

I actually would see a decrease use of dark pools and reserves because during fast markets, they will not be hit because Reg NMS allows it.

Go dark and stay dark will be the future when Reg NMS hits completely July 9th. Sure there is pinging ISO-IOC's price levels but again, during fast markets, smart traders will not be pinging, they will wiping out bids/offers (using ISO's) to get as much stock as possible, as fast as possible. Dark pools will never even get hit, reserves/exchanges will get their shown size filled and the rest will trade thru .

Future smart routers will be:

ISO-IOC- pinging for dark/reserves (nasdaq new routing)

or

ISO- hitting as fast as possible regardless of dark/reserves (built routers, probably non-exchange built by bd's)



:D :D
 
Quote from JMartinez:

I actually would see a decrease use of dark pools and reserves because during fast markets, they will not be hit because Reg NMS allows it.

...rest deleted for brevity...
More...

My fear is the opposite bec in fast markets, getting a fill, even at a slightly inferior to inside price, is more important to avoid the market moving away from you. To achieve that, go dark and avoid NMS no trade through requirements.
 
1. Only displayed quotes have to be hit

2. You are dark so you won't get hit if you are not pinged.

3. When a stock breaks out, fastest one to bid/offer gets filled. Doubt orders that ping vs straight ISO's win.

conlusion:

Going dark = missed markets:D



Quote from rayl:

My fear is the opposite bec in fast markets, getting a fill, even at a slightly inferior to inside price, is more important to avoid the market moving away from you. To achieve that, go dark and avoid NMS no trade through requirements.
More...
 
Quote from JMartinez:

1. Only displayed quotes have to be hit

2. You are dark so you won't get hit if you are not pinged.

3. When a stock breaks out, fastest one to bid/offer gets filled. Doubt orders that ping vs straight ISO's win.

conlusion:

Going dark = missed markets:D
More...

Say fast market, you want to buy a decent block, national best ask is at 10 but you're afraid of the market moving way up on you.

Say someone is willing to sell a big block at 10.05 and you're fine with that bec you think the market will be at 10.25 in a blink. Under NMS trade through protection, you can't even hit that block until you take out the 10, 10.01, 10.02, 10.03 and 10.04s.... but if you do a dark scan on your way to the exchange at 10.05, you may pick up quite a few shares above 10 but less than or equal to 10.05.

This is my fear bec much of the liquidity from this buyer at 10.05 may never see the national market. And naturally, some may make their liquidity available dark only just outside the NBBO.

But this is all hypothetical bec if dark pools remain thin, then no one will bother, and the protected quotes under NMS will work to your benefit (the intended effect).
 
Depends on who the 10,.01,.02.ect.... markets are if you need to sweep up or not.

Your question is too vague.

But basically is you sweep the market centers top book, you can continue with your order. So depending on what market center has that block and where the other little offers are will depend on if you are sweeping them or not.

Markets are going to get faster Aug 20th.





Quote from rayl:

Say fast market, you want to buy a decent block, national best ask is at 10 but you're afraid of the market moving way up on you.

Say someone is willing to sell a big block at 10.05 and you're fine with that bec you think the market will be at 10.25 in a blink. Under NMS trade through protection, you can't even hit that block until you take out the 10, 10.01, 10.02, 10.03 and 10.04s.... but if you do a dark scan on your way to the exchange at 10.05, you may pick up quite a few shares above 10 but less than or equal to 10.05.

This is my fear bec much of the liquidity from this buyer at 10.05 may never see the national market. And naturally, some may make their liquidity available dark only just outside the NBBO.

But this is all hypothetical bec if dark pools remain thin, then no one will bother, and the protected quotes under NMS will work to your benefit (the intended effect).
More...
 
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