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Is it now common practice for HFT market-making algorithms to post liquidity in dark pools and exchanges at the same time?

I ask because I have been reading some documentation (https://squeezemetrics.com/monitor/docs#dpi) on a service which is claiming that market-maker inventory is affected by dark pool buying/selling activity (and that this then affects exchange quotes/prices).

Yet last I heard about this in the news people were getting freaked out about letting HFT into dark pools and fining people or something.

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Yes, it is. There is plenty of information about it online. E.g. here's a related very recent article: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2874957, here's a link to a discussion on Barclays lawsuit with nice liquidity charts: https://jackgavigan.com/2014/06/30/barclays-smoking-chart/ You can also find related discussions on http://tabbforum.com/

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