Dark Pool Riding on Bourses

Today, when I was reading TOI, I came across an article which was really quite fascinating to read. The article was on Dark Pool kind of trading activities, which is getting huge momentum in US and Europe bourses. According to Times, its one of the biggest structural in equity trading to hit the American and European in 20 years, and it is threatening the real existence of exchanges like LSE NYSE and Euronext.

By Investopedia, dark pool gets its name because details of these trades are concealed from the public.

So Dark pooling is not for small investors, this kind of trading is suitable for institutional investors having lump sum amount of money to park in such kind of activity.

As this kind of trading involves huge amount of money, and directly or indirectly it will affect stocks valuations. So regulators providing such platform to these institutional investors, have to keep a hawk eye on them in order to prevent some big fraud or crisis like sub-prime, and also to safegaurd interests of small investors.

Thanks&Regards,
Mohit Kumar