How Dark Pools Help Traders Cheat Transparency

To find out what assets a dark pool will either sell or buy and at what price, you first have to ping it. Once you ping the pool with a request to, say, buy a specific asset, the pool will reply with the price that it’s willing to sell you that asset for. You can either accept the price and complete the transaction, or turn it down and ping again later to see if the price has moved in your direction. Dark pools, then, let traders completely sidestep normal stock and commodities exchanges in order to buy and sell assets without having to broadcast their desired price to the rest of the world.

via The Matrix, but with money: the world of high-speed trading



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