'Dark pools' are growing in number and depth, accounting for around 12% of all US stock trades, reckons consultancy Tabb Group. The label covers any share trade conducted directly between investing institutions, such as banks and hedge funds, rather than via a regulated exchange, such as the London Stock Exchange.
One big advantage is secrecy- there is no requirement to publish details of dark pool trades, as there would be at an exchange. Another is the possibility of faster trades and better prices, particularly if the deal is large.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
See Tim Bennett's video tutorial: Why you should worry about dark pools.
-
MoneyWeek news quiz: Which G7 nation has the most generous state pension?The chancellor “set the context” for the Budget on 26 November this week, and November's Premium Bonds winners were confirmed. The state pension also made headlines. How closely have you been following the news?
-
Have a will? It may not be enough to secure your wishes – here’s what you need tooIncorporating a letter of wishes into your estate planning can provide a unique opportunity to personally guide your loved ones on your final wishes for them and you. We explain how a letter of wishes works.
