Dark Pools: What Are They and What Does the Future Hold for Them?

Published in Micro-Cap Review Magazine

Williams & Jensen’s David Franasiak, Joel Oswald, Eric Robins and Rebecca Konst examine dark pools, their role in trading and their regulation in this article in Micro-Cap Review Magazine: “Dark pools refer to alternative trading systems (ATS) that do not publicly display bids and offers in their quotes and are not required to identify the particular ATS that executed the trade. In contrast, the trade reports of registered exchanges such as the NASDAQ or New York Stock Exchange (NYSE) are required to identify the trading venue that executed the trade. Dark pools have been around since the 1980s as “upstairs” trading in formal exchanges and generally handle institutional investors that trade sizeable positions in a company’s shares. These trades remain anonymous in dark pools so as to avoid possible adverse price movements in the market driven by these trades.” The article begins on page 16.

Read More