You have been granted access to this page through First Click Free. Subsequent use of TabbFORUM will require logging in. If you don't have an account, registration is free.
Advertisement

Videos

  • Rail_thumb_ted

    What happens when our computers get smarter than we are?

    Artificial intelligence is getting smarter by leaps and bounds — within this century, research suggests, a computer AI could be as "smart" as a human being. And then, says Nick Bostrom, it will ...
     
  • Rail_thumb_aesthetic

    Avoiding Algo Disaster

    As the markets have grown increasingly complex, so too have the algorithms designed to navigate them. And capital markets firms increasingly are challenged to manage the risks associated with this algo ...
     
  • Rail_thumb_leap-second

    Forget Leap Year. What's a Leap Second?

    The leap second happens every few years when the standard time around the world is adjusted by one second to account for a slight mismatch between clocks and the earth’s rotation. And it has some exchanges and ...
     
 

More Video | Podcasts

Advertisement

20 November 2012

Dark Pools, Internalization, and Equity Market Quality

Off-exchange trading in equity markets, including broker/dealer internalization and dark pools in which prices are not displayed prior to execution, has grown significantly in recent years. An examination of the relationship between such “dark” trading and market quality shows that increases in dark pool activity and internalization are initially associated with declining bid–offer spreads and increasing depth. But when a majority of trading occurs in undisplayed venues, the benefits of competition are eroded and market quality deteriorates. Public policy considerations for market integrity are addressed on the basis of these findings.


Download/Buy Report

Rate This Research

Your Rating
Community Rating 0%

Add a Comment

You must log in to comment.