As Summer Temperatures Rise, Dark-Pool Volume Climbs Higher

Traders Magazine ^ | 07/18/08 | Nina Mehta

[TigerLikesRooster]

As Summer Temperatures Rise, Dark-Pool Volume Climbs Higher

By Nina Mehta

July 18, 2008

Dark pools are on a hot streak. They're tearing through volume records and turning into big-league market centers in their own right.

Goldman Sach's Sigma X dark pool yesterday executed 406 million shares, making it the seventh-largest market center for U.S. equities. That put Sigma X in line behind Nasdaq, NYSE Arca, the New York Stock Exchange, BATS Trading, Direct Edge ECN and the National Stock Exchange. And ahead of all other venues.

Sigma X's volume is up 100 percent over the last seven weeks, according to Rishi Nangalia, head of product development at Goldman Sachs Electronic Trading. "It's a virtuous circle," he said. "We have more volume passing through from more clients and their algos, and as a result of higher fill rates, we get more flow, which in turn further increases the match rates." This surge is taking place against a backdrop of higher equity market volume overall and greater volatility.

[beebuster2000]

In short, we've got a bunch of people who make nothing, build nothing, distribute nothing, warehouse nothing

I dont share that view. When a company needs capital these guys provide that access and the invaluable service. That's far from "nothing". Then , when you want to sell stock they provide the market. Without it, don't see how the economy functions. That's not nothing.

[Entrepreneur]

I respect your view. That’s the case for the equities market, but not the index funds and speculators.