'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.
Subscribe to 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
-
What is a trust – and should you use it to avoid inheritance tax?Trusts are surging in popularity as a way to avoid inheritance tax, according to financial advisers on the frontline of estate planning. We look at what trusts are and if they are right for you.
-
What will be the consequences of Donald Trump’s "One Big Beautiful Bill"?The US president’s "One Big Beautiful Bill", an extraordinary mix of tax cuts and spending plans, has made it through both houses of the US Congress. What will be the consequences?
