161–170 of 213 posts
There must be some point where this becomes self defeating though, no?
What is interesting here is that if more & more volume goes to private exchange activity, then as the volume dries up on public exchanges, there will be more volatility.. and more reason to move to private exchanges. There must be some point where this becomes self defeating though, no?
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> won't impact prices I strongly suspect that wall street has looked at 401k's/index funds as a giant money filled piñata. It is a huge pile of money following a well understood algorithm which makes it vulnerable to attack. I suspect that this is the absolute core of "dark pool" strategy. Any trade that happens behind closed doors that "doesn't impact prices" means that an index fund is buying or selling at a price…
let's assume you are right. Also assume that the two people in the dark room are both somewhat rational investors. Then let's imagine that they are trading at a price that is significantly different than the open price. Why are they both OK with that price? If the price is higher, the buyer could be buying for less in public. If it's lower, the seller is the one that could sell in public for a profit. So one of the t…
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OP just provided an explanation for Robin Hood's business model, it was never stated that Robin Hood operates in accordance with the law. In fact it is well known, that Robin Hood operated illegally for a long time and got fined by the SEC for its violations: https://www.sec.gov/newsroom/press-releases/2025-5
None of those violations are related to trade order flow. The majority are related to customer protections, lack of data retention etc. With perhaps the violations related to the blue sheet data (transaction data), which is used by various financial regulators to sniff out illicit transactions. Robinhood's been accused of selling out their retail customer by allowing HFT firms to frontrun retail trade. And yet, no ev…
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It's actually the other way around. As a big fund looking to trade a large number of shares in the public market, you'll quickly realize that the market tends to move away from you, and statistically, you're more likely to get a bad deal than a good one. Even if you try to be smart about execution by splitting your orders into chunks, randomizing order sizes, and similar tactics, there is still a huge information asy…
Instead of demanding that your counterparty be uninformed, why not do a market open/close auction every minute?
https://www.fca.org.uk/publications/research/periodic-auctio...
>They’re offering what are dubbed private rooms, gated venues that take the core benefit of a dark pool — the ability to hide big equity deals so they won't impact prices — and add exclusivity, specifying exactly who can partake in any trade. I'm not sure what all the consternation is about. Even without dark pools you could always do direct trades[1] with a party of your choosing, which is even more private and excl…
They do all the communication through a Bloomberg terminal and as far as I now they do no research with the terminal it is just their communication tool.
Ban high frequency trading, ban instant transactions (put them on hold for some time before buying/selling (hours minmum, longer for larger quantities), make the held transactions public, and tax the profits on a time-owned scale. This would turn "investments" into investments again... you really believe that company XY will do something good? Buy stocks and keep them for few years until they grow. Politican John Bob…
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let's assume you are right. Also assume that the two people in the dark room are both somewhat rational investors. Then let's imagine that they are trading at a price that is significantly different than the open price. Why are they both OK with that price? If the price is higher, the buyer could be buying for less in public. If it's lower, the seller is the one that could sell in public for a profit. So one of the t…
Let's assume you are right. If two parties trade a large amount of shares at the public price, how is HFT going to interfere if the trade took place in public?
2) Those trades are happening at the public price. Its not too often that the dark pool trades will happen outside of the NBBO and usually those exclusions happen for very large block trades.
3) Most (all?) pools are reporting to FINRA by closing some may even report sooner after the trade.
So I am not sure what your question is as the data is fairly public already.
Earlier quoted context omitted.
It's actually the other way around. As a big fund looking to trade a large number of shares in the public market, you'll quickly realize that the market tends to move away from you, and statistically, you're more likely to get a bad deal than a good one. Even if you try to be smart about execution by splitting your orders into chunks, randomizing order sizes, and similar tactics, there is still a huge information asy…
Instead of demanding that your counterparty be uninformed, why not do a market open/close auction every minute?