Dark Forces: Off-Exchange Trading on the Rise

Whether it’s an entirely electronic order book with hidden participants and prices, or a room upstairs from the pit, off-exchange trading has always been a part of the industry. Recently, though, with declining liquidity and sensitivity to price movement in regulated markets, as well as increasing costs for participants, more activity is moving to the dark.

This isn’t just restricted to dark pools, though. Internalization is playing a large role in keeping down operational costs for traders, and