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Dark Liqiuidty

dark pool liquidtyDark  liquidity is a type of liquidity that is not available for open trading in the stock exchanges.These types of securities are traded in a special forum known as dark pool.These securities are low cost ,which is  very beneficial for the small investors as they don’t have enough funds.Other than that they also offer benefits to the financial institutions, as these securities increase liquidity.

 

Dark liquidity is mostly traded in secret and is not easily available to the common stock traders.The dark liquidity has seen significant growth in last few years,mainly due to opening up of electronic trading avenues. According to the latest statistics,they have 14 % market share in USA and 6% market share in Europe.These types of securities are mainly traded between private trading companies and stock traders. According to the latest details, SEC, the European Commission and the U.K. Treasury are investigating these funds.

 

 

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About Emaad Qureshi