Block-Size Dark Pools

Dark Pools represent an important and growing area of trading that is well established in the institutional equity markets. This type of liquidity-discovery system will find its way into other asset classes over the coming months and years due to the decrease in the average execution size that accompanies increased usage of electronic trading. The primary purpose of Dark Pools is to trade larger size without the risks associated with exposing either the order or the trader’s intent to the broader market.

There are different types of Dark Pools, and critical subtleties in the way they operate. Traders must be comfortable with the information that is revealed as a result of searching for potential counterparties. There are many different ways to signal counterparties and the best solution for one situation and market may not be appropriate for others. From hands-on involvement, over many years, in the design, building and operation of crossing systems, BlockCross Holdings has unusual expertise in the art of finding block liquidity safely.

BCH pioneered the Pulse/BlockCross® system for US equities (owned and operated by Pulse Trading, Inc.) and the ICAP/BlockCross® system for European equities (owned and operated by ICAP Securities Ltd.).

Trading in the dark is easy. Finding a natural without alerting HFTs is hard.