Dark Pool Trading Systems, used by institutional traders trading in large volumes, help get more liquidity and lower transaction cost. Despite these benefits, there are a few issues, such as inadequate transparency, regulatory requirements, and uniform information access to investors. Considering these systems’ complexity, it’s important that functional testing, as well as gateway and performance testing, be done.
of trading strategies, new product innovations, regulatory requirements and growth in technology have resulted in an increase in trading volumes. In addition to the increased volumes on the exchanges, the volumes of trade on the Dark Pool Trading Systems are growing daily. There are currently 40 Dark Pool Trading Systems operational in the US market. The pictorial representation of a dark pool trade execution is shown as Appendix 1. The Dark Pool Trading systems, mainly used by the institutional traders