We've noted before that the options market is following pretty closely in the path of the equities market: decimalization, direct-access, fragmentation, etc. Now that institutions and a lot of hedge funds are boosting the volume of their options activity, it should surprise no one that people are starting to talk about dark pools for options. According to Financial News Online, Ballista and 3D Markets are two early contenders. As with the equities market, the established exchanges are wary of operating in the dark. For now, they're focused on automation. That presents an amazing opportunity for start-ups. we might even see some alternative trading outfits somehow try to optimize dark volume for both asset classes.
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- here's the article