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clock Created with Sketch. 27/11/14
20:56
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Originally posted by MattyE
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Dark pool trading accounts for a significant portion of equities traded on ASX / Chi-X markets. An ASIC report last year put the figure at between 20-30% of total stock traded each day. If you were following the order book and trades closely you would have seen that the huge volume of shares put up on the sell side of the book, were being absorbed by some one even though the buy side of the book looked horrendously thin all day. I have zero doubt that yesterday's trading can only be explained by a situation where the seller was using the lit market, while the buyer was using dark pools. The buyer used the dark pools as he wanted more shares - seriously as many as he could get his/her hands on - for as cheap as possible. In effect he/she was loving the aggressive fall in the share price! Had he/she been buying those quantities on the lit market, the order book would have looked a lot healthier and the fall in share price would not of been as extreme, meaning he would have paid a much higher average price to absorb the 80-100 odd thousand shares he/she acquired. Where there is big money to be made, there are also dirty tactics. Just don't get fleeced now guys. We are on the verge.
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Ok, I don't know enough about this. Is the lit market the actual market?
(20min delay)