Controversy
The use of dark pools for trading has also attracted controversy. In one case, Pipeline LLC, a company offering its services as a dark pool, had contracted an affiliate that transacted the trades.
In the Pipeline case, the firm began in an attempt to provide a trading system that would protect investors from the open, public electronic marketplace. In that system, investors' orders would be made public on the consolidated tape as soon as they were announced, which traders characterized as "playing poker with your cards face up." The service Pipeline offered was to find counterparties for various trades in a private manner.
Read more about this topic: Dark Liquidity
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