Tuesday, August 02, 2022 11:37:04 AM
These exchanges were developed in the 1980s and as of February 2022, 64 dark pools were registered with the Securities and Exchange Commission.
The Controversy: The existence of dark pools hit the public psyche in early 2021, when GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) skyrocketed 1,041% and 624%, respectively, over the course of four days.
In January and February 2021, institutional ownership of GameStop shares was reported to be more than 100% of the float, indicating more shares were being lent out than what was available. Naked shorting, which takes place primarily over dark pools, was blamed for the discrepancy, casting the existence of alternative exchanges into the spotlight.
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Dark Pools And Retail Traders: Direct dark pool trading is reserved for institutional traders and investors, but after the meme-stock saga, retail traders became more aware of how to use data from the dark exchanges to guide their strategies. This resulted in several apps emerging to provide dark pool feeds.
Approximately 40% of all executed trades take place on dark pools, and when large blocks of individual stocks are bought or sold over these exchanges, retail traders can use the information to understand what “smart money” is doing. The difficulty with dark pool data is that due to its inherent confidentiality, the trades give no indication as to whether an institution is buying or selling the stock.
For this reason, retail traders can watch dark pool data for above-average trading volumes on an individual stock and cross-reference that information with option flow.
If there is above average dark pool prints on a stock, paired with a high level of calls being purchased on the open market, it’s a good indication that institutions are buying over ATSs. Conversely, if large dark pool prints are followed by a large amount of open market put buying on the same stock, it can be assumed institutions are selling over ATSs.
Recent AMC News
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
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- Amcor announces CEO transition and reaffirms fiscal 2024 outlook • PR Newswire (US) • 03/19/2024 08:15:00 PM
- Zoom Rooms at AMC Is Now Live at Several AMC Locations Across the Country as AMC Theatres® and Zoom Redefine Interactive Business Meetings and Hybrid Events • Business Wire • 03/14/2024 10:45:00 AM
- AMC Entertainment Holdings, Inc. Provides Settlement Notice • Business Wire • 03/12/2024 08:30:00 PM
- AMC Significantly Expands the Availability of its Popular Grocery Store Popcorn Through the Addition of Publix and Kroger Stores, and Amazon.com • Business Wire • 03/11/2024 05:09:00 PM
- AMC Entertainment Holdings, Inc. Board of Directors Elects Sonia Jain to Serve as a Director of the Company, Effective March 1, 2024 • Business Wire • 03/01/2024 11:45:00 AM
- Snowflake Stock Plummets 20.3% After CEO Transition; C3.ai, Okta, and Duolingo Surge Post-Strong Quarterly Reports, and More • IH Market News • 02/29/2024 11:09:45 AM
- AMC Entertainment Holdings, Inc. Reports Fourth Quarter and Full Year 2023 Results • Business Wire • 02/28/2024 09:15:00 PM
- AMC Entertainment Holdings, Inc. to Announce Fourth Quarter and Full Year 2023 Results and Host Earnings Webcast • Business Wire • 02/05/2024 09:15:00 PM
- KISS THE FUTURE – The Critically Acclaimed Documentary About a Creative Community Amid the Siege of Sarajevo, the Resilience of Its People Through Art and Music and the Tale of a Post-war Concert by U2 – to Receive a Theatrical Run Exclusively at AMC • Business Wire • 01/31/2024 07:00:00 PM
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- AMC Entertainment Holdings, Inc. Successfully Completes $350 Million At-The-Market Equity Offering and Reduces Debt by $62 Million, Bolstering Liquidity and Strengthening the Balance Sheet • Business Wire • 12/11/2023 10:34:00 PM
- The Met: Live in HD 2023-24 season continues with live transmission of Daniel Catán's 1996 opera Florencia en el Amazonas, the first Spanish-language opera at the Met in nearly a century, on Saturday, December 9, presented by Fathom Events • PR Newswire (US) • 12/05/2023 04:02:00 PM
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