We noted recently that the credit crunch may affect how the buy-side sees dark pools. In particular, the TowerGroup suggested in a report that broker dealer-run dark pools may suffer just a bit, as firms grow more cautious on the health of top sell-side players. Goldman Sachs begs to differ. Rishi Nangalia, Managing Director and Head of Business Development for Goldman Sachs Electronic Trading, tells Advanced Trading that record volumes are being executed on its Sigma X. A record 531 million shares were traded on September 18; the average daily volume for the month was 332 million shares. It's unclear if other broker-run services fared as well. Sigma X, given its gilded owner, maybe in a category of one. My sense is that the real industry wide pain is yet to come. If we settle into a bear market, a distinct possibility, we'll likely experience a drop off in volume across the board. The weak players may end up weeded out.

For more:
- here's the article

Related Articles:
Will internalized dark pools suffer in crisis?
Dark pool universe continues to morph