Dark Liquidity and Dark Pools

Dark Liquidity and Dark Pools

Intuition Publishing
Updated Sep 25, 2020

A dark pool is a source of liquidity that facilitates order execution without publicly highlighting the orders or indications of interest (IOI) to the public or other brokers. They serve particular purposes for financial firms, especially the anonymity they give to traders. Here we examine the benefits and drawbacks they offer and the means by which brokers may gain access to them.