IOIs continue to roil dark pools

Traders Magazine says this about dark pools: "Grey is the new black." The dark pool market is indeed morphing. To gain an edge and boost execution volume, many are now embracing "indications of interest," which we've noted has been unsettling for some dark pool purists. There are a lot of concerns about gaming, and some customers are worried that their information may leak. Still, it's clear that the use of IOIs is expanding, as more messages zip not only among dark pools, but among other liquidity sources as well. This has the ability to fragment the universe at an ever more granular level. BNY ConvergEx Group and Morgan Stanley have developed separate systems that send out IOIs, while maintaining completely dark pools as well. Many are working through their policies, with an eye on satisfying all customers. Eventually, customers will want to know what their policies are.  

For more:
- here's the Traders article

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