Dark Pools: The Structure and Future of Off-Exchange Trading and Liquidity (Finance and Capital Markets Series)

Dark Pools Is A Practical Text Dealing With The Increasingly Important Topic Of Dark Pools, Or Non-displayed, Off-exchange Trading And Liquidity. A Growing Amount Of Institutional Trading Occurs Away From Exchanges And Expansion In This Little Understood Sector Of The Market Is Set To Continue. The Book Is Organized In Three Parts: Market Structure, Micro Issues, And Environment Of The Future. The First Chapters Consider The Development And Evolution Of The Equity Trading Marketplace Over The Past Two Decades, Including The Creation Of Dedicated Dark Pool Platforms, And Introduce The Concept Of Market Liquidity, The Formation Of Displayed And Non-displayed Orders, And The Operation And Structure Of Key Dark Pools. Attention Then Turns To The Architecture Of A Typical Dark Pool, And How Orders Are Routed To Capture Dimensions Of Non-displayed Liquidity. This Is Followed By An Analysis Of The Pricing And Economics Of Dark Liquidity And Common Trading Strategies Employed By Institutions - Including Dark Algorithms, High Frequency Trading And The Controversial Mechanism Of 'gaming.' The Final Chapters Analyze The Regulatory And Control Framework And Consider How Dark Pools May Evolve In A Post-financial Crisis World. Dark Pools Is A Practical Text Dealing With The Increasingly Important Topic Of Dark Pools, Or Non-displayed, Off-exchange Trading And Liquidity. It Discusses The Development Of The Equity Trading Marketplace Over The Past Two Decades And How Dark Pools May Evolve In A Post-financial Crisis World--provided By Publisher. Cover; Contents; List Of Illustrations; Acknowledgments; About The Author; Part I: Market Structure; 1 Introduction To Dark Pools; 2 Market Liquidity And Structure; 3 Dark Pool Structure; Part Ii: Micro Issues; 4 Topics In Pricing And Execution; 5 Trading In Dark Pools; 6 Aspects Of Technology And Architecture; Part Iii: Environment Of The Future; 7 Regulation, Control, And Transparency; 8 The Future Of Dark Pools; Appendix 1 Listing Of Dark Pool Sites; Appendix 2 Listing Of Mifid Regulated Markets, Systematic Internalizers, And Multilateral Trading Facilities; Notes; Selected Bibliography. Erik Banks. Includes Bibliographical References And Index. Dark Pools is a practical text dealing with the increasingly important topic of dark pools, or non-displayed, off-exchange trading and liquidity. It discusses the development of the equity trading marketplace over the past two decades and how dark pools may evolve in a post-financial crisis world. Dark Pools is a practical text dealing with the increasingly important topic of dark pools, or non-displayed, off-exchange trading and liquidity. A growing amount of institutional trading occurs away from exchanges and expansion in this little understood sector of the market is set to continue. The book is organized in three parts: Market Structure, Micro Issues, and Environment of the Future. The first chapters consider the development and evolution of the equity trading marketplace over the past two decades, including the creation of dedicated dark pool platforms, and introduce the concept of market liquidity, the formation of displayed and non-displayed orders, and the operation and structure of key dark pools. Attention then turns to the architecture of a typical dark pool, and how orders are routed to capture dimensions of non-displayed liquidity. This is followed by an analysis of the pricing and economics of dark liquidity and common trading strategies employed by institutions - including dark algorithms, high frequency trading and the controversial mechanism of 'gaming.' The final chapters analyze the regulatory and control framework and consider how dark pools may evolve in a post-financial crisis world Contents......Page 6 List of Illustrations......Page 8 Acknowledgments......Page 10 About the Author......Page 11 PART I: MARKET STRUCTURE......Page 12 1 Introduction to Dark Pools......Page 14 2 Market Liquidity and Structure......Page 41 3 Dark Pool Structure......Page 68 PART II: MICRO ISSUES......Page 102 4 Topics in Pricing and Execution......Page 104 5 Trading in Dark Pools......Page 126 6 Aspects of Technology and Architecture......Page 147 PART III: ENVIRONMENT OF THE FUTURE......Page 172 7 Regulation, Control, and Transparency......Page 174 8 The Future of Dark Pools......Page 194 Appendix 1 Listing of Dark Pool Sites......Page 210 Appendix 2 Listing of MiFID Regulated Markets, Systematic Internalizers, and Multilateral Trading Facilities......Page 212 Notes......Page 217 Selected Bibliography......Page 224 Glossary......Page 226 Index......Page 236 Machine generated contents note: PART I: THE NATURE OF CATASTROPHE Taxonomy of Risk Catastrophes Financial Catastrophe PART II: THE RISK FRAMEWORK The Risk Management Process Models, Metrics and Limitations PART III: PRACTICAL MANAGEMENT Past Catastrophes Lessons Learned and Prescriptive Measures The Future of Risk Management Notes Bibliography Index.