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Most markets are regulated in such a way that unlit venues have to report executions back to the lit market. Also most alternative venues will operate through c
by phyalow 13y ago
Most markets are regulated in such a way that unlit venues have to report executions back to the lit market. Also most alternative venues will operate through clearing houses (the same as lit public markets). The risks you mention are real but as mentioned most sophisticated markets have regulations and rules in place to mitigate them - after all a darkpool or crossing network that failed to find quality and non flakey contra parties doesnt present a compelling case for its use!