Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 18, 2022 erstellt
Description:
We compare execution outcomes in dark pools that are open to all investors against outcomes in pools that restrict high frequency trader access. Conditional on execution, trades in restricted pools have less order flow information leakage and adverse selection risk than trades in pools with unrestricted access. Dark pools that completely prohibit high frequency traders have less order flow information leakage than those that allow customers to opt-out of interacting with this type of order flow. Differences in execution outcomes are concentrated in smaller trades. We conclude that the ability to segment order flow can improve execution outcomes for investors