Advanced Trading reports that dark pool operators are increasingly heeding buy-side demands to put an end to gaming. It's all too possible for a trader to ping systems and execute small orders to glean information about the volume available. The OnePipe Optimal Liquidity Management System, which aggregates liquidity from more than 30 dark pools, has rolled out a system that essentially acts like spam filter, the article notes. That alleviates buy-side firms of vetting each dark pool's anti-gaming services. Other aggregators, like LiquidNet, have also gotten in on the act. Broker-dealer owned services are responding to the need, as well. The buy-side, however, will likely proceed with caution. Many have tools to break up orders and essentially take more control of their own action. We'll likely see a lot more marketing in this area.
For more:
- here's the Advanced Trading article [1]
Related Article:
Dark pools, technology run amok? [2]