1
$\begingroup$

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.

$\endgroup$

1 Answer 1

5
$\begingroup$

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/

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.