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Commentary

Anne Plested
Traders Magazine Online News

More Unanswered Questions

Anne Plested from Fidessa highlights potentially harmful effects of the MiFID II trading obligations for shares.

Traders Poll

As firms and venues begin to report trade data to the CAT, what is your biggest concern with the system and data?






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Finding Your Way in the Dark: How can dark pools work for you?

Dark Pools have become a bigger part of today's markets, yet some traders get nervous when they think about trading in the dark. But they shouldn't be as dark pools are just another source of liquidity. Watch and learn more about how you can find your way in the dark pool. For more information, visit www.bloombergtradebook.com

Q&A

Q: How can you tell if a certain dark pool isn't performing well for you?

A: First, you need to continually monitor the post-trade data and the prices you’re getting from the different pools. Then, you may notice patterns, both good and bad. For example, you may see that you’ve gotten better prices in one dark pool in the early trading hours, or with one particular order size. Or, the trade data may show that you’re repeatedly getting poorer execution at another dark pool, and that one should be avoided for a while. Your broker should be able to provide you with post trade reports that show a measure of toxicity for each venue you traded in.

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When it comes to stock trading, so much is changing so quickly that it’s difficult to understand and manage all the variables. Whether it’s algorithmic trading, price swings or dark liquidity, The Insight Bites series presents smart and concise snapshots of what a trader can do to address and overcome the most pressing of these challenges. Hosted by Traders Magazine and brought to you by Bloomberg Tradebook, each 60 second animated video provides quick and humorous insight into a unique issue that traders face every day. For more information, visit www.bloombergtradebook.com.