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rige

06/30/17 3:05 PM

#121218 RE: mrducks #121211

Good article, thanks for posting.

Benefits
Competitive forces: Trading venues can offer variations on pricing, order types and sizes, or other trade characteristics in order to cater to a particular type of flow.
Minimizes impact: The anonymity of dark pools helps traders to minimize their impact. This is particularly useful for hard-to-trade stocks with wide spreads, or for large, information-based trades with high signaling risk.
Technological advances: Lest we think that only the super- connected high frequency shops can avail themselves of the latest tools, and that they are the ones prowling in dark pools, it is interesting to point out that the most popular algorithm among long- only firms is actually one that never displays in lit markets.