Dark pools have grown because of HFT
Originally, dark pools were designed for big institutions. Dark pools quickly grew, however, in part due to the growth of high-frequency trading (HFT) in the traditional displayed stock markets. #DarkpoolAbuse @ApeAverage @TheRealDarkPool #AMC Image
I put a thread together on An Overview on HFT, & the Systematic Risk it Creates. I will be adding #darkpoolabuse as well, how it correlates, how this is all used against the Average Every day Trader/Retail. The System Needs Change... "Sic Semper Tyrannis" Image
High-frequency trading (HFT) takes algorithmic trading to a different level altogether—think of it as "algo" trading on steroids. As the term implies, HF-trading involves placing thousands of orders at blindingly fast speeds. The Goal is to Capitalize on Price Discrepancies... ImageImageImageImage
Algorithms can react instantaneously to market conditions, The dazzling speed at which most algorithmic HFT trading takes place means that one errant or faulty algorithm can rack up millions in losses in a very short period. Algo-HFT is a notable contributor to market volatility ImageImageImageImage
What are ‘dark pools’?

👀Some #Darkpools Allow HFT...👀“Dark pools”—also known as “black pools”, “dark liquidity” and “upstairs markets”—are private forums for trading securities which are not available to the public. The names refer to the trading venues’ lack of transparency. ImageImageImageImage

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More from @Phoenix92159269

Jan 31, 2022
In 2005 #Darkpools took up 3-5% of Trading, In 2014 there was 12% of the volume being traded off the lit exchange. Now we are in 2022, certain securities #AMC have👀over 60% of the trading volume go Dark by PFOF brokers sending retail orders through the #OTC to ATS/Darkpools... Image
The Operations of #Darkpools are very problematic & hinder price discovery. In other words they provide better pricing for big institutional investors who use them to create worse pricing for the rest of us. Although the damage a simple "glitch" can have.
➡️2010-$862B in 20 Mins ImageImageImageImage
➡️2014 Around 40% of all U.S. stock trades happen "off exchange" up from 16% 6 yrs ago.
-Credit Suisse under investigation for use of its #darkpools, Goldman Sachs paid $800,000 to settle claims it failed to ensure trades on its platform that took place at best possible price. ImageImageImageImage
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