“Dark pools” - the secret stock market
Forget about the New York Stock Exchange, forget about the Dow Jones Index or the Standard and Poor’s. These markets are for the suckers, and the Dow Jones Index or the S&Ps transmit false news about what is really going on in the markets.
The big action for the big players takes place elsewhere. The alternative market is called “dark pools” and at this stock exchange trades are made anonymously.Â
There are now dozens of new private trading networks in place, and in only two years these exchanges have changed the face of Wall Street.
On these alternative stock exchange networks institutional investors, hedge funds, and potent private investors can buy and sell huge blocks of shares without public notice, and they can do that outside of the regulative framework that exists for the public stock exchanges.
Background article: http://www.marketwatch.com/news/story/secret-stock-market-upstart-systems/story.aspx?guid=%7b11EB6EC9-6D71-43C9-ADD2-59C6B9E3C5D1%7d&siteid=yhoof&print=true&dist=printTop