Dark pool volume is holding strong. Trading magazine notes data from Rosenblatt Securities showing that dark pools were 8.75 percent of consolidated volume in January, about the same as in November and December, but several percentage points higher than in 2008. The biggest winners appear to be the biggest dark pools: Knight Capital Group's Knight Link, Sigma X, Getco Execution Services and Credit Suisse's CrossFinder.
High-frequency trading outfits, whose influence seems to be growing daily, seem to be responsible for much of the volume increase, though specific dark pools point to specific reasons. Morgan Stanley for example suggests that its policy of not sending out indications of interest has boosted volume. Credit Suisse attributes its strong rise on volume to new technology it rolled out in March and a new data center, Trading notes. You get the feeling that not all services are benefiting, however.
For more:
- here's the article [1]
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