Posted By: Phoenix
a new way to corner the market? - 06/22/09 02:22 PM
from http://www.ft.com/cms/s/0/92ca01fa-5d32-11de-9d42-00144feabdc0.html :
"All the share trades that are carried out every day on the New York and London share markets and around the world - prices, bid-offer spreads and trade sizes - are visible to every member of the investing public. Right?
Wrong. That is the strange truth behind the emergence of "dark pools" of liquidity - a relatively new venue for the buying and selling of shares. ...The average size of a trade on the New York Stock Exchange is 300 shares, while a typical large order in a dark pool can be as big as 55,000 shares.
Any large order coming into the order book of an exchange would be immediately visible to rival traders, jeopardising the trade, dark pool operators say. That also explains why prices are only visible to traders entering a dark pool...."
This seems straight out of the movie, "Wall Street" (cornering orange juice futures), and the Hunt brothers monopolizing silver market futures trading....
"All the share trades that are carried out every day on the New York and London share markets and around the world - prices, bid-offer spreads and trade sizes - are visible to every member of the investing public. Right?
Wrong. That is the strange truth behind the emergence of "dark pools" of liquidity - a relatively new venue for the buying and selling of shares. ...The average size of a trade on the New York Stock Exchange is 300 shares, while a typical large order in a dark pool can be as big as 55,000 shares.
Any large order coming into the order book of an exchange would be immediately visible to rival traders, jeopardising the trade, dark pool operators say. That also explains why prices are only visible to traders entering a dark pool...."
This seems straight out of the movie, "Wall Street" (cornering orange juice futures), and the Hunt brothers monopolizing silver market futures trading....