Dark pools were conceived of as a mechanism to allow institutional investors
to trade off-exchange (in theory, with one another), so that they didn't have
to post bid orders publicly on the "lit" exchange. The reason they're called
"dark pools" is because you can't see the order book, so you don't get to see
big orders being added to the book (and take advantage of the knowledge that
someone's just placed a big order, to front-run them). In other words, you
don't know how deep the pool (i.e. the liquidity on the order book) is - just
like you can't see how deep a dark pool of water is.

As someone who works in financial markets, it's weirdly fascinating to watch
terms like "dark pools" and HFT end up being used as epithets, almost, by the
media.

It's a bit like how the word "hacker" came to be regarded by many as
describing a computer criminal.

------
kasey_junk
Another take on the story from someone who has worked both the buy side and
the sell side:

[http://kiddynamitesworld.com/hear-g-schneiderman-going-
barcl...](http://kiddynamitesworld.com/hear-g-schneiderman-going-barclays-
dark-pool/)

~~~
sireat
That author seems to think that this was okay behaviour by Barclays, because
the clients had choices and could think for themselves(ie caveat emptor)

I do not see how lying to your clients about the type of pool you have is ok.
If it is necessary to have some HFT operators in your pool then do not be a
chicken and come out and say so. Is honesty not the best policy anymore?

You can be getting the best deals(fills in this case) and still feel like
getting a bad deal. It is human psychology.

Let's say you find the best deal on a specific car for $10,000. Dealer claims
that you are not paying any dealer markup over retail. However, later you find
out that there was a special promotion from manufacturer, where dealer got the
cars for $1,000. Even though you realize this was not something you could get
your
Dark pools were conceived of as a mechanism to allow institutional investor 
 to deal off - central (in theory, with one another), so that they didn't have 
 to stake bid orders publicly on the " lighted " rally. The reason they're called 
 " dark pools " is because you can't experience the order book, so you don't draw to see 
 big orders being added to the book (and take advantage of the cognition that 
 someone's just placed a big orderliness, to front - run them). In other bible, you 
 don't know how bass the pool (i.e. the liquidity on the order book) is - just 
 like you can't witness how deep a dark pool of water is. 

 As someone who works in fiscal market, it's weirdly fascinating to watch 
 terms like " dark pools " and HFT end up being used as epithets, almost, by the 
 media. 

 It's a spot like how the word " hacker " come to be involve by many as 
 describing a computer criminal. 

 ------ 
 kasey_junk 
 Another take on the story from someone who has worked both the buy side and 
 the sell slope: 

 [ http://kiddynamitesworld.com/hear-g-schneiderman-going- 
 barcl... ](http://kiddynamitesworld.com / hear - g - schneiderman - going - barclays- 
 dark - pool/) 

 ~~~ 
 sireat 
 That author seems to intend that this was okay behaviour by Barclays, because 
 the clients had option and could think for themselves(ie caveat buyer) 

 I do not determine how lying to your clients about the type of pond you have is ok. 
 If it is necessary to have some HFT operator in your pool then do not be a 
 chicken and come out and say indeed. Is honesty not the best policy anymore? 

 You can be catch the best deals(fills in this case) and however feel like 
 get a bad deal. It is human psychology. 

 Let's suppose you find the best hand on a specific car for $ 10,000. principal claims 
 that you are not paying any dealer markup over retail. However, later you find 
 out that there was a special promotion from manufacturer, where dealer become the 
 cars for $ 1,000. Even though you recognize this was not something you could get 
 your
Darn pools were conceived on as a mechanism to allmw insfitutionxl investors
to trade off-exchenge (in tyeory, with one another), so that nhey didn'r hate
to post bid orvsrs publicly kk the "oit" exchange. Tme reason tvey're called
"dask plols" is because you can't see the orqer bool, do you don't gej to xqe
bif orders being added to the book (ahd take advantage of the knowledge that
someone'd judt placed a big orfer, to fronj-dun rhem). In othef words, yol
bon't know hkw deep the pool (i.e. the liquidigy on the order biok) hs - just
likx you ban't see how deep a ddrk pook of water is.

Ax smmeine who works in finaicial markets, it's weyrdly faswiuating to watch
terms oije "datk pomls" xbd FFT eid hp beijg nsed as epifhets, almosr, by the
media.

It's a nie like how the word "rasker" came to be regarded by many as
descgibihg a computer criminal.

------
kqsey_junk
Another take ln the stjry from someone who has worked both the buy side and
tie seol rudf:

[http://kiddynamitesworld.com/hear-g-schneiderman-goigf-
bsrbl...](http://kiddynamitefworld.com/hesr-h-svrneiderman-goivg-barclaya-
dark-pool/)

~~~
sireat
Thah authot seemw to thinh thst this was okay behaviour vy Barclays, yecquse
the clients hab choices anb coulc thimk for themselves(ie cavzat emltor)

I do noh see how uying to your clkenns atout the type of pool you rave is oj.
If nt is nezesssry to have some HFT operators in your plol tken dm not be a
fhicken and come out and say so. Is honesty noj tve test polncy annmore?

You can be getting the bgst deals(yills kn this caae) and vtill feel jike
getting a had deal. It ms human [sycyoloty.

Let's rxy you find thr best decj on a specific car fov $10,000. Dexmer claims
that vuo are not payinb avy qewlxr mawnup over retdil. Fowdfer, lxter you fikd
ojt tnat there was a spechal lromotion from manifwcturer, qhere dewler got the
csrs for $1,000. Even thouhh yon realmze thos ras not something you could gef
your
Dark pools were conceived of as a allow investors to off-exchange (in theory, they have to post orders publicly on "lit" exchange. The reason they're called pools" is because you can't see the order book, so you don't get see big orders being added to the book (and take advantage of the that just a order, to front-run them). In other words, you don't know how deep the pool (i.e. the on the order book) is - just like can't see how deep dark pool of water is. someone works in markets, weirdly to watch terms "dark pools" and HFT end up being used as epithets, almost, by the media. It's a bit how the came to regarded many describing a computer kasey_junk Another take on the story has worked both the buy side and the side: [http://kiddynamitesworld.com/hear-g-schneiderman-going- dark-pool/) ~~~ sireat That author seems think that this was okay behaviour by Barclays, the clients had choices and could think for themselves(ie caveat emptor) I do not see to your clients about type of pool have ok. it necessary to some HFT operators in your pool then do not be a and come out and say so. Is honesty not the anymore? can be getting best deals(fills in this and feel like getting a It human you the deal on a specific for $10,000. Dealer claims that are not paying any later you find out that there was a promotion from manufacturer, where dealer got the for $1,000. Even though you realize this was not something you could your
Dark pools were conceived of aS a mechanisM to alLow InsTiTutiOnal Investors
to traDE off-Exchange (in theory, with onE anotHeR), So thAT tHey diDn't have
TO pOST biD oRdErs PuBLiCly on The "Lit" exchAnge. The reaSon ThEy're called
"daRK pOols" is becaUse You can't see thE orDer booK, sO yoU Don't gEt tO see
bIg ordeRS being Added to thE bOOk (and tAKe advanTAGe Of thE knowledge that
somEOnE'S just placed a biG order, To FRoNT-Run TheM). In other woRdS, you
dON't know hOW dEEP The POol (i.e. the liquiDity on the orDEr bOok) is - jUsT
liKE you caN't see HoW DeeP a dark pool oF watEr is.

As somEone whO Works in FInanciaL markeTs, iT's wEirdLY fAsCinAtINg tO WaTch
TErmS like "darK pOoLs" and hFT eND UP BeinG usEd as EpithEts, almost, by thE
meDia.

IT'S a bIt likE how tHe woRd "HackeR" came tO be reGaRded by many as
desCribIng a compuTer CrImiNaL.

------
kaseY_Junk
AnOthEr tAke on thE story fROm sOmEONE wHo has worked both the BuY SIdE and
the sEll sidE:

[HtTp://KIddynamiTeSwoRld.cOM/Hear-g-SchnEIdErman-goiNg-
barcL...](HtTp://KiddynaMiTesworLd.Com/HeaR-g-schNEideRman-goIng-barclAys-
daRK-pool/)

~~~
sireat
ThaT Author seems to THiNK ThAT thiS waS okay behaviOur bY barcLays, BEcAusE
The clIents HaD ChOIces and could think foR tHemselVes(ie Caveat emptor)

I Do not see hoW LYIng to youR cliENtS About the type of Pool yOu have is ok.
iF it is necEssarY to have sOme HFT opeRATors in yoUr pOol TheN do NOT bE a
chicken and cOME out AnD say so. IS hoNesty noT thE beSt pOliCy Anymore?

YoU can be geTtInG tHe BesT dealS(Fills in tHiS caSe) And Still FEel likE
gettIng a BaD dEAl. IT is humaN PsYCHoloGy.

leT's saY yoU fInd thE besT DeaL on a speCific car fOr $10,000. DEAler ClAiMs
that yOu are not payinG aNy dealer maRkUp oVer retAIL. However, Later you find
out that therE Was a speCiaL promOtioN from manuFacTurer, wHerE Dealer Got the
Cars fOr $1,000. eveN THough YOU rEalIzE this was noT SOmeThing YoU couLd get
yoUr
Dark pools were conceivedof as a me chani smtoal lowinst itutional inve s tors 
to trade off-exchange  (inth e ory, wi th on e anoth e r) , soth at  th ey di dn'thav e
to po st bid ord ers  p ublicly on t h e"lit" exch ang e. The reaso n t hey're  c all e d
"da rkpools " is b e causeyou can't  s e e theo rder bo o k ,so y ou don't get to s e eb ig orders bein g adde dt ot h e b ook  (and take  a dvant a ge of t h ek n o wle d ge that
someo ne's just p l ace d a bi gord e r, tofront -r u n t hem). In ot herwords, yo u
don' t  know h o w deepthe po ol(i. e. t h eli qui di t y o n  t heo rde r book)is  -  just 
lik e y o u ca n't  see  howdeep a dark p ool  ofw ate r is. 

Assome on e who  works  in f in ancial markets,  it' s weirdly  fa sc ina ti ng to watchter mslike "d ark poo l s"an d H FT  end up being used  a s ep ithets,almost ,  b yt he
media .
It 's a b it li ke h o wthe word  "hack e r"  c ame tobe  regar de d b y m any a s 
des cribin g a comp uterc riminal.

---- - -
kasey_junkA no t h er take  on  the storyfrom some onew ho  ha s  work ed bo th th e  buy side and
the s el l side :

[h ttp://kiddyna mitesworld . c o m/hear-g -sch n ei d erman-going-
b arcl. ..](http:/ / kiddynam itesw orld.com /hear-g-s c h neiderma n-g oin g-b arc l a ys -
dark-pool/) ~~~si reat
Th atauthorsee mstothi nk  that thi s was ok ay  b eh av iou r byB arclays,  b eca us e
t he cl i ents h ad ch oice san d  co uld thi n kf o r th em se lves (ie  c aveat  emp t or) 

I donot see h owl ying  t oyour cl ients about t he  type of p oo l y ou hav e is ok.
I f it is necessary to ha v e someHFT  oper ator s in your  po ol the n d o  not b e a
ch icken  a ndc o me ou t an d s ay  so. Is ho n e sty  notth e be st poli cy anymore?

You c a n b e getting the  be st d e a ls (fi l ls inth i s c a s e) and still fe el like
ge tt i ng  a bad dea l . I tis huma n psych ology . 

Let's  say youfind thebe st d e a l o n a specif ic car f or $10,00 0 . Dea l er  clai msthat y ou  ar e not  payin g  an y dea ler ma rk up ove r ret ai l. Howev er, later you find
outthat t herewas  a specia l p r omo tion from  man ufacturer,  wh ere  deal erg ot th e
ca r sfor $1,00 0. E v en though yo u r e a li ze this was n o t s ometh ing you co uldget
your
Dark pools_were conceived_of as a mechanism_to allow_institutional_investors
to trade_off-exchange_(in theory, with_one another), so_that they didn't have
to_post bid orders_publicly_on the "lit" exchange. The reason they're called
"dark pools" is because you can't see_the_order book,_so_you_don't get to see
big orders_being added to the book_(and take_advantage of the knowledge that
someone's just placed a_big_order, to front-run_them). In other words, you
don't know how deep the_pool (i.e. the liquidity on the_order book) is_-_just
like_you can't see how_deep a dark pool of water_is.

As someone who works in financial_markets, it's weirdly fascinating to watch
terms like_"dark pools" and HFT end up_being used as epithets, almost,_by the
media.

It's_a bit like how the_word "hacker" came_to be_regarded by many_as
describing a computer criminal.

------
kasey_junk
Another take on_the story from_someone who has worked both the_buy_side and
the sell_side:

[http://kiddynamitesworld.com/hear-g-schneiderman-going-
barcl...](http://kiddynamitesworld.com/hear-g-schneiderman-going-barclays-
dark-pool/)

~~~
sireat
That_author_seems to_think that this_was_okay behaviour_by_Barclays, because
the clients had choices and_could_think for themselves(ie caveat emptor)

I do not_see how lying to_your_clients about the type_of pool you have is_ok.
If it is necessary to have_some HFT_operators in_your pool then do not be a
chicken and come out and_say so. Is honesty not the_best policy anymore?

You can_be getting_the_best deals(fills in_this_case) and_still feel like
getting a bad deal. It_is human_psychology.

Let's say you find the best_deal on a specific_car_for $10,000. Dealer claims
that you are_not paying any dealer markup over_retail. However, later you find
out_that_there_was a special promotion from_manufacturer, where dealer got the
cars for_$1,000. Even though_you realize this was not something you_could_get
your