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It's Gray Out There

Dark pools turn to automated IOIs, raising concerns about leakage

Traders Magazine, June 2008

Nina Mehta

Gray is the new black. Dark liquidity is going gray and the industry is mixed about whether this development is good or bad for investors and the marketplace. Many non-displayed alternative trading systems, a.k.a. dark pools, are expanding their reach. They're no longer as dark or as passive as they initially were. That means orders that enter their pools don't simply cross against other orders resting there or passing through, such as a broker's algorithmic flow. Some pools are getting more aggressive. They're willing

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