nickola.pazderic
06-27-2011, 10:52 PM
Hi--
In case people are not aware of so-called dark pools or dark liquidity, I paste the following passage from a wikipedia article on the subject:
Dark pools are generally very similar to standard markets with similar order types, pricing rules and prioritization rules. However the liquidity is deliberately not advertised - there is no market depth feed. Such markets have no need of an iceberg order type....Dark liquidity pools offer institutional investors many of the efficiencies associated with trading on the exchanges' public limit order books but without showing their actions to others. Dark liquidity pools avoid this risk because neither the price nor the identity of the trading company is displayed....Dark pools allow funds to line up and move large blocks of equities without tipping their hands as to what they are up to. Modern trading platforms and the lack of human interaction have reduced the time scale on market movements. This increased responsiveness of the price of an equity to market pressures has made it more difficult to move large blocks of stock without affecting the price.
The introduction of the robot is truly exciting, and its trades continue to be profitable. My gratitude can hardly be expressed. Nonetheless and once again, I wish to raise questions about the methodology behind the robot-- in this case in relation to dark pools and dark liquidity. Since I'm not an expert on the subject, I can only ask in the most vague way: How do OTC transactions influence or not influnece the calls of the robots? Have these pools been factored into the EV methodology? If so, how?
These time consuming questions are, of course, directed to Pascal and Billy. Can you both again indulge my questions or point me to prior threads on this subject?
Many thanks always,
In case people are not aware of so-called dark pools or dark liquidity, I paste the following passage from a wikipedia article on the subject:
Dark pools are generally very similar to standard markets with similar order types, pricing rules and prioritization rules. However the liquidity is deliberately not advertised - there is no market depth feed. Such markets have no need of an iceberg order type....Dark liquidity pools offer institutional investors many of the efficiencies associated with trading on the exchanges' public limit order books but without showing their actions to others. Dark liquidity pools avoid this risk because neither the price nor the identity of the trading company is displayed....Dark pools allow funds to line up and move large blocks of equities without tipping their hands as to what they are up to. Modern trading platforms and the lack of human interaction have reduced the time scale on market movements. This increased responsiveness of the price of an equity to market pressures has made it more difficult to move large blocks of stock without affecting the price.
The introduction of the robot is truly exciting, and its trades continue to be profitable. My gratitude can hardly be expressed. Nonetheless and once again, I wish to raise questions about the methodology behind the robot-- in this case in relation to dark pools and dark liquidity. Since I'm not an expert on the subject, I can only ask in the most vague way: How do OTC transactions influence or not influnece the calls of the robots? Have these pools been factored into the EV methodology? If so, how?
These time consuming questions are, of course, directed to Pascal and Billy. Can you both again indulge my questions or point me to prior threads on this subject?
Many thanks always,