'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
-
Review: Eden Roc Cap Cana – fun, sun and golf in the CaribbeanTravel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yetThe chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry
