A Shot in the Dark – 26 May 2010
First Published Wednesday, 26th May 2010 02:05 pm from Fidessa : Fidessa
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pool volumes in a bid to improve transparency of
non-lit trading in Europe. The report is published by Markit and
target="_blank">here. Whilst the six firms involved
should be applauded for taking these first steps towards greater
transparency, the announcement still leaves a few questions
unanswered. Firstly, not all the big boys are playing - notable
Sachs and it will be interesting to see what happens to
the figures if and when it decides to play too.
Also, the published numbers represent only a fraction of
the total non-lit volumes being reported across dark MTFs, OTC
target="_blank">FTSE 100, for example. Last month
66% of its constituents were traded on various lit venues
target="_blank">BATS Europe etc. The remainder was
target="_blank">Nomura NX, bilateral OTC trading and
Systematic Internalisers. Just to be absolutely clear, however,
target="_blank">FTSE 100 last month was traded on
broker dark pools but what is certain is that it wasn't
target="_blank">Markit report provides some useful
additional data, the only way to get a completely accurate figure
target="_blank">Markit numbers from the OTC and SI
reports, add back in the registered dark MTFs and then make a
guess as to what is missing.
that was made to me is that it is still not possible to get an
accurate, independent figure for broker dark pool trading in a
target="_blank">Markit report only provides a
combined number of some broker dark pool trades in each country
target="_blank">Markit can only publish the
information they are given but, until the industry as a whole
unites behind a common methodology and approach, it looks like we
will remain somewhat in the dark about the dark.