July 18, 2018
In the past decade, discussion around dark pools evolved from an obscure market-structure issue to a highly-charged debate over whether traders armed with computer algorithms were using the private venues to take advantage of investors with slower price feeds. The fight gained traction in 2014 after the release of Michael Lewis’s book "Flash Boys.”
Dark pools execute about 14 percent of U.S. equity volume, according to Rosenblatt Securities, an institutional brokerage firm specializing in market structure. Mutual funds and other institutional investors have often used the venues to make big trades because the firms can do so without tipping off the rest of the market.