Larry Tabb, of the Tabb Group, notes that the number of Dark Pools is heading toward 50. We keep hearing about consolidation, but I don't see it happening. All the while, the landscape continues to morph. While it seems that the broker-owned services--the likes of Goldman Sachs' Sigma X--seem to have the advantage, the market is still wide open. Plenty of room for innovation. Tabb runs down the big issues for users, noting in particular the rise of indications of interest. This phenomenon is here to stay. Users will be wise to make sure they know exactly what they are getting into. It's a powerful marketing opportunity, though "defining when, how, who and what type of information is being disseminated, and how much control the user has in limiting these features, will become increasingly important." My sense is that more will find ways to offer various options regarding whether an order is accompanied by an IOI.  

For more:
- here's the column in Advance Trading

Related Articles:
Dark pools, technology run amok?
Dark pool technology outpacing buyside understanding
Dark pools grapple with IOIs