📈 dark pool trading - YouTube

and since 2007 things have gone from being controlled by humans

to a fully automated and electronic environment where really the only thing

there are are computers in charge of processing the orders department

and this already seems to be excessive the number of people here we open are rows of computers there

and even without more with the arrival of computer technologies advance and

financial regulatory change increasingly the importance of speed when

transmitting and receiving data has come the current moment with the tri-minister only represent a

part of the volume of opera that has electronic all these advances has allowed to improve

the efficiency of the market add liquidity reduce costs increase execution leisure improve

risk management and allow access to specific markets for a little so that

we can see the evolution of what we have The past is worth the importance of electronic markets tion of the

market on ca NTE is a market over the counter otc it is a kind

of high- end market where it is traded on financial assets between two parties without the

control and supervision of a regulator as if it occurs in the stock markets and futures markets worth

this chart can see what would be regulated markets each regulated and unregulated markets

so that we can see and also the context where we operate, it is worth noting

that not all regulated not all regulated that we also have a significant amount of transactions

that occur in that part of the market in unregulated markets it is important to know it

is important to know the main difference that we find between centralized and decentralized

markets is that the tariff meters there is a single order book which is

responsible for linking all participants in that market while the non- centralized

market has a multiple system or one of the three as many as market creators

where the lack of transparency regarding the pro Market fund is evident

by showing only the price of the ibi of which we do not have is the order book

we do not see the liquidity that may exist both above and below the current price this is

basic and fundamental it is important to know that for the The very nature of this type of non-

centralized markets for the same asset may have different prices, I believe that everyone

can understand it, that is to say that if we want to operate euro-dollar currency crosses, each

market maker will offer us a different price and volume. and the dollars an otc market is worth

in contrast we can see the derivative in the futures market that is 6 the ticket 6

is the futures market is centralized the futures market and centralized exchanges only

has only one single order book for all operators who want to operate in that

particular market that happens with the euro dollar, for example, depending on the type of

opinion of the broker in which it is If you want to trade, if you look, there will be different prices, they will

differ, why then because it is not centralized because Darwins has one euro dollar is worth because

interaction blocks have another euro dollar because whoever the broker is, each

one has its own market, its euro Dollar is worth that it is linked in turn behind with

liquidity providers that is why you fix they are not they are not exactly it does not handle exactly the

prices with this same for each one they are totally different markets hence that is the reasoning

that when it is said that the volume of forest or the volume of otc markets are not valid they are not

genuine because for this reason why it was born does not represent the entire market as if it

happens in these futures markets in the stock exchanges and futures only having an equilibrium

the order is everything the world has to go there to buy sell these not in the case of you can

go to any type of market of any broker it is worth but he has a representation then on

top from him from a global point of view of all the negotiations that are made in all the euro

dollars because this is also a way here the arbitration algorithms also work

analyzing between houses between euro dollars of different I hope they have had this as they

subtract us the otc markets due to expenses as just explained by the problem that here lies in

that the analyzes that we do under this type of markets would be based on data that, although it

could be a meaningful and valid representation of the entire market, does not actually

represent genuinely all the volume price data is worth what I just said to

have a civil form of this data we should analyze said asset under a centralized market

following the example of rod now we must analyze in the futures market that its centralizing brand

with insurance with hernán ethics 6 what is recommended therefore is if you do not have

sufficient economic capital capacity to To operate this futures market we can analyze

the asset in this futures market and execute the operation through another more affordable

financial derivative worth less leveraged such as the ccd with a good block that is not a market maker if you

remember the brokers module An intermediate option would be to operate the small version of the

future in our future, which in the case of the euro long with the ticker more effe, if we open a future graph

the ccd we will see that the price movement is practically the same even though they are

different markets, this is possible thanks to an arbitration process let's go back to see the arbitrations carried

out by high frequency algorithms that occur systematically between both markets perfect

we are going to advance we are going to present what the dark are because many people who surely do not

know are not aware of the existence of these types of markets a dark pools its private market is

worth 1 tc that puts in contact institutional investors and fac The exchange

of financial assets is illegal, with the peculiarity that their transactions are not

immediately reported, the amount traded being unknown, the volume within 24 to the following,

their transactions are not reported immediately, that is, it turns out that we have a

better market, they are bought. futures of the s & p 500 and that these transactions are not reported

immediately is the layer of opacity that we have added to this when the institution wants to buy and sell

a huge amount of an asset, it goes to these types of markets mainly because

it does not know because it knows that it is Accessing the public market will cost you to find a counterpart that

possibly has a worse price in addition to exploratory techniques such as front running

executed by a high-frequency algorithm will be exposed in this type of market,

this negative impact is avoided and at the same time they obtain better commissions since the

rates required by the public markets are saved this ti The market is simply a large institution that

wants to buy 5000 contracts of the s p500 and since it knows that those 5000 contracts are going to be exposed

if they put it in the centralized market, they go to press these markets, come and say

and get in touch with another operator. who wants to sell those 5000 contracts to them, the transaction between them

is executed does not appear anywhere and will be within the following 24 hours,

there is no need to report that transaction

in addition to private financial institutions and public exchanges that have their own

data, said james, we are going to negotiate with the most liquidity in the world, the gm, which is the market with the

largest number of contracts on options and futures, also has its own dar pool and offers this

service for banks through what they have called block teis this You can check

his website his Alzheimer's page, see how important this is, many people are

practically unaware The main futures and options market, the GM also offers this possibility

that obviously complying with certain with certain directive faces with certain restrictions between

those operators who are going to pool because it offers the possibility of doing this

type of opaque transactions so that you can see how important it is to always contextualize and give a

certain ambiguous tone to everything we do because you can then make a perfect analysis or that

you think is perfect but you do not really know in your face you see that what is being cooked

What is happening here because of course if even the official market leaves us or opens the door

for the volume that we are seeing in this type of actions, even if it is the futures

market, even if it is the centralized market, because we already have another small layer of no transparency

which we do not really know one hundred percent of the volume how it is being traded because

we have this possibility because it is the difficult thing that continues All of this being Latin America 2 the

centralized shares in the US were carried out in Darfur from 16 to 18 percent, that is, from

6 to 18 percent, it is developed within fixed markets, it is an important amount according to

the Bloomberg study as a whole to operating the thumb 30% of the total volume

traded is a lot the market share of trade in European nations has expanded rapidly in

recent years growing from 1 in 2009 to 8 percent in 2016 two in Europe

how does this affect how it affects you to our operations to our analyzes

this of the data the activity to carry out is not the last important role in

the determination of the yields in reality it is uncertainty that can be related to them

having therefore important microstructural implications it turns out that when you are analyzing

the asset in which it has been possible to produce these very significant actions in a hidden way and

obviously we cannot even assess the intention Of these negotiations, these transactions are worth to

our determined by the supply and demand of the market the public does not have an

immediate impact on the promotion of the price these are what they wanted to reach but there are studies that affirm

that the operators of the public markets react to the report of orders executed in the

blackpool once it is liberal, being able to significantly alter the analysis of the interaction

until that moment, this I have to give with this initially that transaction is the body has an

immediate impact on the price but at the same time and of course Otherwise, when the

operators of the released that report and see that x contracts have been executed at such a price level,

it is normal for you to be disturbed by the perception of that new information that has reached them at that

time and that can significantly alter the perception of the value of that asset is worth being able to

take at the same time worth of the hand to alter the analysis that could have It has been developed up to

that moment so that you can see a little of all this that I want to remember many people, surely they did

not know it because that is there, it is there, there are all markets of both assets and each time it

has more volume so it is relevant to know it is worth knowing this type of this kind of context