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How about get rid of obfuscated monetary bullshit like darkpools first
by largepeepee 4y ago
How about get rid of obfuscated monetary bullshit like darkpools first
- dahdum 4y agoDoesn’t that just increase volatility and hand profits to high frequency / predatory traders? How does it help retail or index investors?
- koolba 4y agoWhat’s wrong with dark pools? The name is meant to conjure up some evil mental image, but it’s just two or more parties that want to offload / onload some stock without impacting the market. It’s no different than telling your neighbor you’re willing to sell your house for $X without publicly listing it.
- tptacek 4y agoAlso: what's "monetary" about them?
- koolba 4y agoI have no idea what that’s supposed to mean as “monetary” would include everything from lunch money to interest rates.
- maxbond 4y agoSeems pretty clear from context they meant "financial" or perhaps "related to money", I don't think we have to put them on the spot for it. I imagine this is part of the meta-point you're making across the thread that people on HN talk out of their hat about finance (I plead guilty) but I feel like your comment about Money Stuff/"truth searching" was enough, and that asking people to defend their misuse of terminology is punching down.
- arc-in-space 4y agoI agree, but also, maybe some amount of punching down is deserved - there really does tend to be a lot of people speaking in an authoritative tone while being completely wrong in the finance-related hn threads EDIT: I suppose we can scratch the "finance-related" bit
- maxbond 4y agoI'm not saying that people shouldn't be challenged, but that you can do that without punching down. Indeed, without punching.
- deleted 4y ago[deleted]
- rocqua 4y agoDark pools mean that public market prices aren't as accurate. The story of financial markets being valuable to wider society is, among other things, price discovery. Dark pools don't serve that purpose. Moreover, the PFOF story depends on 'price improvement'. If public stock markets aren't accurate, then 'price improvement' is a meaningless concept, because it compares the price to the public stock market price. > It’s no different than telling your neighbor you’re willing to sell your house for $X without publicly listing it. The difference is that the most accurate price for 'my house' is not of significant public value. Whilst the most accurate price for stocks is quite valuable to the wider world.
- anonymoushn 4y ago'price improvement' compared to lit venues with no retail flow is already a meaningless concept.
- _5uxp 4y agoAll details and Fin. Engineering are just a more sophisticated scam to dump on public investors. There I said it. Sure someone can explain why not that in a long text but IMO that is not the truth.
- snowwrestler 4y agoIt’s worth pointing out that, in most U.S. localities at least, real estate transactions become public knowledge once they close. You can go look up, on a government website, how much a property sold for even if the transaction was conducted privately. So price discovery is still possible. I don’t think there is an equivalent public reporting mechanism for private “dark pool” transactions of financial instruments. Another way to say “without impacting the market” is “denying the market information it needs to set prices accurately.”
- cuteboy19 4y agoAssuming that you are interested in crypto, did you know that the vast majority of crypto trades happen in dark pools?
- vgatherps 4y agoAssuming you mean OTC desks, because there isn't much proper dark pool presence in crypto. OTC desks aren’t where majority of spot and delta one products trade although some of their advertising might have you think otherwise.
- cuteboy19 4y agoA dark pool is just a private transaction between two people. So every crypto txn not on an exchange is a dark pool onto itself