The value of shares traded through independently owned “dark pools” of liquidity in Europe has jumped almost fivefold since the start of the year in a sign that investors are shrugging off increasing regulatory scrutiny of these off- exchange trading venues.
According to Thomson Reuters, the value of trades carried out within dark pools of liquidity – facilities that allow dealing in shares outside of traditional exchanges without prices being disclosed publicly – rose from €2.2bn in January to €9.5bn ($14bn) in October.
However, the total amount of trading via dark pools of all kinds is still modest. Independent dark pools accounted for only 1.2 per cent of all share trading in Europe in October, Thomson Reuters said.