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
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
Here’s the chart for that day and what happened after that.
Now, let’s also see a bullish example.
Signature Dark Pool Buy Orders on 26 December 2018
We all know what happened after Christmas 2018.
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