Goldman Sachs, Morgan Stanley and UBS said this morning that they have agreed to share their “dark pools,” the trading arenas used by institutional investors seeking to trade large blocks of stocks without alerting the broader market about such moves. All of the major investment banks operate dark pools, with Goldman Sachs widely thought to be the industry leader.
Dark pools have been criticized as sapping transparency from the market, perhaps making pricing less efficient and certainly creating more uncertainty about the actual volume of shares trading hands. Large trading orders are broken into smaller pieces and matched to other orders by computers. Traditionally this has been done internally within each individual bank. Under the plan announced today, Goldman, UBS and Morgan Stanley will allow for the secretive trading to take place between their clients. The pools are Goldman’s Sigma X, Morgan Stanley’s MS POOL and UBS’s PIN ATS.
The move threatens to take business away from the public stock exchanges and furthers consolidation in the brokerage industry, as the large investment banks with many clients are obviously best positioned to employ dark pools. Dark pools now account for some 10 percent of equities trading in the United States, and more than 20% of all trades in New York Stock Exchange-listed stocks.
Goldman, UBS and Morgan Stanley agree on dark pools [Reuters]
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ooooohhhhh “dark mysterious pools of capital”…the end is nigh!…repent you sourcerers of commerce!
In all seriousness, this is probably not what the banks should be doing, given the heavy hands that are about to bitch slap the industry. Anything with even the appearence of secrecy or impropriety will only fuel the fire of increased regulation. I don’t agree with that sentiment, but i don’t think right now is quite the time for the b/ds to start yelling “dont look over here…nothing to see.”
it’s no different than crossing stock upstairs really. It’s just automated and more anonymous-
tell me more about the secret thing. Don’t all trades have to “print” on the NYSE consolidated tape. If so, no secret here. Just efficiency, lower transaction costs (both implicit and explicit – see CFA study notes).
9:35 you are correct. The trades will print out loud once they are done.
Dark pools allow MMs to trade directly with each other, eliminating the exchange all-together. In this case, the banks are connecting clients in these dark pools, allowing for greater anonymity. If you’re moving big blocks of stock, you don’t want Joey on the flow-ah to know about it.
carney, your eyes are deep dark pools of mystery
Any idea why aren’t the big index players – Barclay Global, State Street – aren’t in on this as well?
HAM: you’re hilarious. A few weeks ago took my daughter to look at schools, among them Hamilton. Nice place but I couldn’t shake the thought while I was there that she would be around boys like you. Not sure how I feel about that.
9:46 is a dad with an 17/18 yr old daughter? DB’s audience broader than I thought.
@9:46 here. Yeah. Its hard to see the screen with cataracts plus I can’t type given the arthritic condition in my hands. Plus my bladder is in such a state that I’m running to the bathroom every five minutes. Its difficult, but yes I look at DB.
Kids only go to Hamilton if they cant get in to a real school
Send some pictures of your daughter.
If they can’t get into Colgate.
Post some pictures of your daughter.
Now this is news worthy of discussing both in chat rooms like this and on the air. So where is that dope from CNBC who fouls the air each day with his non-news about industry layoffs and fabrications about subprime write-offs using his keen eye for the obvious? The Gasbagarino lacks the intellectual depth to understand a dark pool from shit pool. Armed with his double digit IQ and market savvy, the KING OF THE MUTE BUTTON could not string together the requisite words to add any value to such a dialogue. So here’s to the most overpaid man in business cable news – nice job getting out front on this one. Keep up the good job of breaking wind rather than news.
At your service – Judge Judy here.
ha 9:46. clever, but not what i meant.
in my experiences the seasoned veterans in this industry lack the sense of humor that DB thrives on.
as for your daughter, there’s “boys like you” everywhere. just ask girl, golden girl, etc. set that butterfly free.
I’d like to tap into your daughter’s dark pool… if you know what I mean.
I’m just saying: her dark pool is probably a nice source of liquidity… if you know what I mean.
@9:56,9:58,10:04am…
You must be the same clown over on the Erin Callan thread who is repeatedly posting “I’d hit that”.
Tell us a little about yourself.
The Guy from Delaware.
Guy From Delaware,
I got an error that said the 9:56 post didn’t post, and I realized I wanted to add to the comment. I’m a long-time reader, first-time poster, I hadn’t posted anything in the Erin Callan thread. But I may now. Because I would hit that.
And by way… I’ve sex with gayer guys than you on the way to having sex with guys.
@9:58: couldn’t have said it better myself. Hamilton is to Colgate as Wachovia is to Goldman Sachs… if Wachovia served organic free-range granola flakes in the cafeteria and Goldman offered a professional barber service and monogrammed towels next to the squash courts.
@9:58: couldn’t have said it better myself. Hamilton is to Colgate as Wachovia is to Goldman Sachs… if Wachovia served organic free-range granola flakes in the cafeteria.
There is a deep, dark pool of anal piss sitting on the floor next to my desk. Thank you Kati rolls.
Where does Hobart fit into all of this?
@9:46 here. First, can’t believe how the thought of my daughter sight unseen is waking such thoughts in all of you. Clearly you’re not getting a sufficient amount of sex. Second, we also visited Colgate et.al. Hate to break it to you, but these places are not as different as you all seem to think.
First, does with myself count? Second, I am fully aware of this, as with every other top 25 Northeast liberal arts school.
guest@10:23am…
You are just another gay-dominated personality on db. Not very interesting really.
I asked for a little info on you, and I guess I got it.
But tell us this though. If you are such a flaming faggot as you imply, why are you interested in that dude’s teenage daughter? Or in Erin for that matter?
The Guy from Delaware
GFD,
you are an idiot
guest@10:55am…
Brilliant posting. Enlightening.
The Guy from Delaware
guest@10:55am…
Brilliant posting. Enlightening.
The Guy from Delaware
Most of the Hamilton guys I know are a lot more fun than the those who went to Colgate. And don’t get me started on Camp Trin Trin.
@10:23
colgate is to hamilton as your mom is to my balls. no matter how hard she tries, shell never be more than my personal ball washer.
Guy from Delaware, what kind of language is that from a Delawarian? You must be from Wilmington, or at least New Castle County, which is essentially a cesspool formed by the human runoff of Philadelphia and New Jersey.
@ 11:12
Zing! You got that one off.
Frankly, Ham05 seems pretty normal and is frequently funny. Face it, solicitous dad, wherever your daughter goes to school, she’s going to be around guys whose sexual interest is on overdrive.
Hey guys. Let’s cut all the juvenile bang your daughter bullshit and focus on more substantive shit like Judge Judy’s commentary about the Gasman. Now that is a witty las. Wonder just what she has under her robe that causes such angst?
Hey guys. Let’s cut all the juvenile bang your daughter bullshit and focus on more substantive shit like Judge Judy’s commentary about the Gasman. Now that is a witty las. Wonder just what she has under her robe that causes such angst?
@11:12 replying to 10:23:
The great thing about Colgate is they teach us about things like apostrophes. You know, the little stuff that makes life just a bit more civil for those of us who didn’t grow up eating eggplant parm on the hood of a Dodge Neon in the parking lot of a strip mall.
It’s cool though. I bet your University of Delaware degree looks great next to your foreclosure notices.
I’d like to pound her gavel… if you know what I mean.
Hey guys. Let’s cut all the juvenile bang your daughter bullshit and focus on more substantive shit like Judge Judy’s commentary about the Gasman. Now that is a witty las. Wonder just what she has under her robe that causes such angst?
JJ, you are indeed a witty las. So, are you like the Gasman’s exwife?
Just saw a segment on CNBC about possible collusion between oil research and Goldman traders. Gasbag wrote a book about this shit (he was four years late with it – but who’s counting)back in 2003 with the securities analysts. So why wouldn’t CNBC have him on to discuss this? Answer = even they don’t believe his bullshit and they write his paycheck. JUDGE JUDY IS SPOT ON!
Pretty funny. Erin is in Europe. Trish is in Brazil. Becky is in Texas. Maria is all around the world. Then there is the core group who keep things running while the globetrotters are making money for the company. And then there is Gasbag. Where is he? He gets his three minutes a day when crawls out from under the rock. Pretty funny.
Guest@11:22AM…
11:12? 10:23?
What do those comments have to do with the University of Delaware, or with Delaware at all?
Were you attempting to direct some lame comment toward me? If so, you failed.
The Guy from Delaware
hasn’t gasbag been accurate in his layoff predictions? why all butt hurt?
Not really. He’s called 500 of the last 20 decisions. Guys a fucking idiot. Someone called it a “keen observation” of the obvious and he still fucks it up. I get more info out of a broken record.
Good point. Just watched Gasbag put in his 3 minutes for the day. Everything he said was bullshit to the point when his associates about laughed him off the air. Can this guy even construct a sentence without a grunt or a mispronounced word? Herb G and Dennis make a good team and they were clearly annoyed by their onairhead editor. What a sick fucking joke.
Colgate? Hamilton? Buy a time machine and go to real schools boys!
yeah like St Lawrence..
Or Hobart
Man, what a dope am I. Thought we were discussing dark pools on this post????
Looks like the only one that wants to be serious is Judge Judy – well done my dear. Wanna fuck?
hahaha… St. Lawrence and Hobart. My incarcerated business partner’s retarded gay niece went there!
Two shares of BSC to anyone who gets the reference.
Sounds like Joe Bonjourno????
hey GFD – I think I know your brother – BFD
Wait, @ 1:20, did you just say Kneale is a good anchor?
WTF are you smoking, and more importantly, where can I get some?
Indeed. He sure beats the shit out of the Gasbag. Look past the funky glasses. He is quite smart and very entertaining.
Let the dark pools focus on what is the darkest these banks have in common: OTC derivatives and BBB and CCC rated (or not yet rated) toxic products they own and have issued to each other.
That’ll give them plenty of work.
Michael
dark pool sounds like the next place where the super rich can get gleaned by the former derivative players, who were the former third party chinese reps, who were the former energy players, who were former dot com players, etc …
what is the big deal its the customer’s money, they can do what they want. Sounds like a slow news day where accountability tales are no where to be seen.