Dark Pools Transactions Explained


Ever wondered why there are so many orders on SPY for the same share quantity at the same exact price? Or how orders are coming in for $279 when SPY never traded at $279 today?

Let’s start with the signature share sizes for various ETFs.

Signature Share Quantities for Late Dark Pool Orders

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Funds place their trades over the Atlantic in Europe to get around having to report them right away. We don’t see them until hours later. Often times, not until the next trading day. In the case that it is on a Friday, we don’t see them until Monday.

This goes for all of the signature share size orders. It is a loophole that funds use to get around having to report orders right away.

Let’s consider some examples. The first one comes on 10 October 2018.

Signature Dark Pool Sell Orders on 10 October 2018

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Source: Flowalgoapp

Here’s the chart for that day and what happened after that.

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Now, let’s also see a bullish example.

Signature Dark Pool Buy Orders on 26 December 2018

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Source: Flowalgoapp

We all know what happened after Christmas 2018.

I am tracking dark pools daily as well as the big orders on ES mini futures market. I am sharing this information with my subscribers. If you want to follow this information too, make sure to subscribe here.

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