‘Knight’mare Triggered Volume Plunge at Knight Capital Dark Pool – MarketBeat – WSJ
A dark pool operated by Knight Capital saw volume plunge 44% in August from a month earlier, outpacing the 4% to 17% declines other dark pools suffered in a sluggish month overall, according to research provided by Tabb Group.
Dark pools are electronic venues that match up trades without publicly displaying bids and offers. Trades are published on the tape only after completion. Money managers generally prefer executing large orders “in the dark” because it lessens the odds of tipping the market.
Categories: Trading opinion
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