Dark Pools Case Study example
Undergraduate
Case Study
Finance & Accounting
Pages 12 (3012 words)
Download 0
Dark Pools Table of Contents Introduction 3 Dark Pools 4 Main aim of Dark Pool 5 Trading in Dark Pools 6 Effect of Dark Pool on Price Discovery 7 Improvement in price discovery by the dark pool 9 Dark Pool – Bad or Good 9 Name of Student: Name of Professor: Course Number: Date of Paper: Dark Pools Introduction The overall picture of the financial market has encountered much turmoil which has forced the traders or the investors to land in a depressing position, thereby losing their money…

Introduction

They are known to be trading in a dark pool. Thus, the concept of Dark Pool was introduced much back in 1980. This was initiated when many few of the institutional investors and traders got involved in trade in a secure place, away from the interfering eyes of the brokers or public exchanges. Their main aim was to sell or buy large amount of the stocks without being affected by the market fluctuations and achieve a better price than that provided by the public exchanges (“Definition of Dark Pools”). It was noticed that around 2005, the dark pools was successful in capturing 3-5% of the total market activity. After that, the situation had started to improve when the Security and Exchange Commission (SEC) passed a new regulation, called the Reg NMS (Regulation National Market System). In this regulation, there were provisions which had increased the level of competition among the exchanges. However, it got rid of the rules that confined manual quotations which are generated by the stock exchanges. ...
Download paper
Not exactly what you need?

Related papers

Financial Report: Costing and Traditional Costing
Numerous firms in all fields of businesses have opted to use Activity based cost allocation systems after realising that traditional costing methods in firms can give some misleading information regarding the product lines, profitability of products, markets and clients. Activity based costing is a process that measures the cost and performance of cost objects, activities and resources. Costs…
Traditional Absorption Costing versus Activity Based Costing.
In fact Geri and Ronen (2005) indicate that cost accounting systems do not normally command a high ranking in the hierarchy of most organisations, it is the information that they generate that plays a critical role in the performance of organisations and in the decision making process. The range of systems available and the claims made by the proponents of each have led to several debates.…
recruitment methods
They would believe that their chances of getting the said job are minimal since there are a number of other applicants also trying for the same vacancy. Hence these two reasons suggest how a firm should always avoid the discussion of generating large applicant pools for a firm and must never emphasize on bringing together so many people at the same time. Its policy should be such that it asks very…
u09a1 Universe Review
Dark energy, which also goes by the names of the cosmological constant or quintessence, must exist due to the rate of expansion we observe for our universe. Not only is the universe expanding, but this expansion is also accelerating so the unknown 'anti-gravity' force at work is termed 'dark energy'. Some researchers are searching for an explanation that encompasses both dark matter and dark…
Current Economy and The Great Depresson
As a result, half of the financial institutions in the US became insolvent. In summary, the US manufacturing production was down 54% in 1932 as compared to 1929, while the unemployment level were up by more than 25%, or more than 12 million people. The economic downturn soon spread to the rest of the world due to the relationship of the US with the Europe’s economy in the post World War 1…
Why is Cost Accounting So Important to the Success of the Firm?
Cost accounting is very important because it provides relevant information that can be used by the managerial staff to make decisions. The information provided by cost accounting is mainly used internally by corporations. The purpose of this paper is to describe the importance of cost accounting for a firm. Cost accounting provides relevant information that can be used by both managers and…
Discuss the Role of Exchange Traded Currency Options in Risk Management
Over the counter (OTC) transactions are primarily utilized in currency options trade. Leverage is integral to exchange traded currency options. In this regard, returns associated with the resultant transactions are massive. On the same note, such transactions come with a downside of risks. Combining traded currency options with concurrent forex pair enhances locking in of profits. As a result,…