075: Dan Aisen – The Mechanics of a Dark Pool, and a Quest to Make Markets “Fair” w/ IEX Co-Founder
Chat With Traders
00:00
The Negative Effect of Dark Pools on Trading
Dark pools offer an opportunity for a very large trader to put a large order into the market and have a chance of executing, but not have any adverse impact in the stock if they don't execute. Most dark pools are operated by brokers, and brokers use them as a chance to execute trades and internalize trades without having to incur fees on the exchanges. So that goes back to the maker taker fee model on the exchanges because it's shifted to favor of market makers which hurt investors.
Transcript
Play full episode
