Dark pools of liquidity provide liquidity that is not displayed in order books. A dark pool is an electronic marketplace that gives institutional investors the possibility to trade large number of shares in liquid or illiquid stocks without revealing themselves to the open market.
Dark pools were initially a US phenomenon, driven by the growth of crossing networks and alternative trading venues, and the rapid adoption of electronic trading technologies. Now the phenomenon has come to Europe; Turquoise has a non-displayed order book, Chi-X has Chi-Delta, Deutsche Börse has Xetra MidPoint etc.
Now, Neonet has started to provide access to dark venues. We solve the complexity of the increasingly fragmented trading by aggregating dark and lit liquidity. Our most recent addition is SmartPool, the multi-lateral trading facility set up by NYSE Euronext in partnership with J.P. Morgan, HSBC and BNP Paribas. With the addition of SmartPool, we offer access to dark liquidity on six venues including Chi-Delta, Neuro Dark, Turquoise’s Dark Pool, Xetra Mid Point and Ireland Stock Exchange. Additional venues will be added going forward.