The results of February’s theTRADEnews.com poll reveal that 72% of readers will make greater use of dark liquidity this year. But volatility and reduced trade sizes mean traders will have to be more wary about how they use this increasingly important liquidity source.
There is no shortage of dark trading tools in the market, with even more to launch this year. As well as the plethora of dark pools and broker-owned crossing engines, the sell-side has developed dark liquidity seeking algorithms, while exchanges and multilateral trading facilities (MTFs) are also offering or introducing non-displayed trading functionality.
The London Stock Exchange, for example, will introduce a dark limit order type on 16 March, and is preparing to launch Baikal, a dark trading venue and liquidity aggregator, in June. Turquoise, the broker-backed MTF, plans to aggregate broker dark pools from Q1 this year, to complement its integrated dark and lit book.
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