The Growth of Dark Pool Trading in FX
Paul Alves, Head of Business Development for North America at Siege FX, speaks with TABBforum, providing answers to many of the questions he gets from clients and prospects.
"Ever since 2005, equities dark pools have become a key channel for institutional participants to execute block trades. These alternative trading systems, either operated by brokers, market-makers or exchanges, provide anonymity to investors. By concealing the identities and intentions of all participants, traders using dark pools can limit an adverse impact on market prices. Such impacts are typical of ‘lit’ venues like exchanges, where large order books are clearly visible to all participants.
The growth of Dark Pool trading has been fuelled in part by the development of sophisticated TCA, which enables traders to analyse execution performance to try and achieve best possible outcomes versus both visible and hidden costs.
Can investors expect the FX market to further embrace this kind of venue? And what are the pros and cons of these mechanisms?....."
To read more of Paul's comments please visit TABBforum - Free to read (requires registration)
https://tabbforum.com/opinions...
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