Crossing Networks/Dark Pools

Muriel Siebert on Wall Street Then and Now: ’1,365 Men and Me’
August 20, 2008 | In Part 2 of an exclusive interview with Advanced Trading, Muriel Siebert sits down with Editor-in-Chief Kerry Massaro to discuss how Wall Street has changed in the 40 years since Siebert started trading.

Exclusive: Inside State Street’s FICross
August 18, 2008 | Advanced Trading gets an inside look at State Street's global anonymous fixed income crossing platform.

End Game: Anti-Gaming Technology in Dark Pools Tops Buy-Side Agenda
August 08, 2008 | The buy side is pressing the sell side for more anti-gaming technology to prevent price manipulation in dark pools.

Q&A with ITG’s Tony Huck: Deploying Anti-Gaming Logic in Dark Liquidity Pools
August 05, 2008 | Dark pool operators can deter gamers with restrictions but are they wiling to turn away certain order flow?

ITG Buys Merrill’s Stake in BlockAlert
July 31, 2008 |

New European Dark Pool for Illiquid Stocks
July 23, 2008 | London-based stock exchange Plus Markets Group has announced plans to launch a new dark liquidity pool for small- and mid-cap securities by the end of this year.

Fidelity’s CrossStream Adds UBS, Sigma X to make 28 Connections
July 23, 2008 |

Baikal Dark Pool Project Could Evolve into a Liquidity Hub
July 17, 2008 | Baikal Dark Pool Project Could Evolve into a Liquidity Hub

More
OnePipe Rolls Out Advanced Anti-Gaming Logic To Catch Suspicious Trades in Dark Pools July 08, 2008
Liquidnet Files to Raise $500 Million in IPO July 03, 2008
LiquidityPort to Launch Platform for Block Futures & Options Trading June 11, 2008
NYFIX Rolls Out High Performance Version of Appia FIX Engine June 02, 2008
Credit Agricole Cheuvreux CrossFire Adds BNY ConvergEx Groups’ VortEx to Dark Pool Sweep May 29, 2008
BNY ConvergEx Group Launches New Trading Desk Dedicated to Accessing Dark Liquidity May 29, 2008
Liquidnet Australia Trades A$1 Billion in ASX listed Securities May 28, 2008
Big Broker-Dealers Announce Dark Pool Access May 23, 2008
Balarkas New CEO of Instinet Europe April 22, 2008
Ballista Unveils Electronic Platform to Aggregate Options Liquidity In Fragmented Market April 21, 2008
Instinet And Samsung Launch Korean Crossing Network March 31, 2008
Nasdaq OMX Invests in Agora-X OTC Derivatives ECN February 29, 2008
Cross Asset Trading Heats Up September 11, 2007

Opinions

Exchanges Add Dark Pools Downstream
The move by NYSE-Arca and Nasdaq to access dark pools is a well crafted move by the exchanges to reposition themselves and will inevitably lead to more competition.

Defining a Good Market Structure
The subtleties among market structures - auction, order-book, over-the-counter, open outcry, crossing - are enough to make scholars tongue tied.

Matching Within
Automating internalization is all the rage lately. Over the past few months, we've been hearing that some broker-dealers have begun automating the matching of internal order flow by crossing buy and sell orders from various departments, including algorithmic order flow, direct-market-access flow, retail flow, etc.

Research

Buy Side Crossing Networks Heat Up in Europe

Customize My Dark Pool
Dark liquidity and how to access it will continue to be a hot topic in 2008, posing challenges as exchanges, ECNs and other pools each try to devise new differentiators to attract a powerful mix of liquidity sources.

Who's Looking Out for Your Block Trading Interests?
With money management firms growing rapidly in size over the past 10 years, being able to trade large blocks of stock without any information leakage to the market is becoming a major issue.

Crossing Networks Directory

The following is a directory of the major crossing networks, including independent players, exchange provided networks and broker-dealer ATSs. It explains each service, its customer base, how often orders are crossed, and what users can expect from the service going forward.

Wondering how much volume is being matched via dark books? These charts, care of research firm Aite Group, offer a glimpse of each venues market share--aggregating the market share of all the dark pools into one figure. There are three charts--one is each venues market share in NYSE stocks, the other is each venues share in Nasdaq stocks and the last is total market share that each venue has in combined Nasdaq stocks and NYSE listed stocks. We also have the figures from 2006 so you can compare and see the growth or contraction of the different marketplaces.

Popular Articles

This page covers an emerging phenomenon in the marketplace, which is the birth and growth of new market centers which are called crossing networks, dark pools of liquidity or dark books. These marketplaces offer a place for traders to execute trades without quoting out to the market until after the trade is complete, therefore there is no information leakage and the trade is ultimately done �in the dark.� Trades enter the pool of liquidity and if there is an exact pricing match, the trades is executed, if not the order moves out of the system to be executed elsewhere. This section covers stories including newly launched dark books or crossing networks, pricing structures and linkages being formed to increase liquidity of these market centers to de-fragment the market place, launching of dark pools overseas in new marketplaces, launching of dark books in products other than equities, algorithms used to trade in dark books, how buy side traders are navigating these emerging pools of liquidity using execution management systems and order management systems, etc. This page also includes directories of dark books or crossing networks, including those owned by exchanges, broker-dealers, agency brokers and those that are independent. It also includes a directory of international dark pools.