Shedding Light on Dark Liquidity Pools

Degryse, Hans; Van Achter, Mark; Wuyts, Gunther

doi:10.2139/ssrn.1303482

Shedding Light on Dark Liquidity Pools

TILEC Discussion Paper No. 2008-039

19 Pages Posted: 18 Nov 2008 Last revised: 20 Dec 2008

See all articles by Hans Degryse

Hans Degryse

KU Leuven, Department Accounting, Finance and Insurance; Centre for Economic Policy Research (CEPR)

Mark Van Achter

Erasmus University Rotterdam (EUR) - Finance

Gunther Wuyts

KU Leuven - University of Leuven

Date Written: November 18, 2008

Abstract

This article reviews the recent developments on dark liquidity pools starting from the theoretical and empirical academic literature. The number of dark liquidity pools as well as their trading volume has grown substantially in the last couple of years. We highlight the incentives of providers as well as users of these dark liquidity pools and study the impact of recent financial regulation in Europe (MiFID). We conclude by providing an outlook on dark liquidity pools.

Suggested Citation: Suggested Citation

Degryse, Hans and Van Achter, Mark and Wuyts, Gunther, Shedding Light on Dark Liquidity Pools (November 18, 2008). TILEC Discussion Paper No. 2008-039. Available at SSRN: https://ssrn.com/abstract=1303482 or http://dx.doi.org/10.2139/ssrn.1303482