In cosmology, dark matter is a type of matter that the boffins reckon accounts for a large part of the total mass of the universe. It cannot be seen and neither emits nor absorbs light. And yet it is estimated to account for over 80% of the total universe – so, pretty important then.
In European equities trading the rise of dark pools has created a similar enigma. Everybody knows that dark pool trading is important and makes up a significant proportion of the total trading universe, but no one really knows just how much (or how little). So, rather than let the folks at Fidessa Labs enjoy their usual Christmas jamboree of Twister and mince pie eating competitions, I asked them to produce the attached report. Just as with dark matter it relies on estimates, but it does provide a neutral and (hopefully) comprehensive view of the what, where and how much of dark trading in Europe. Please let us know what you think and what else you would like to see included.
In the meantime Happy Christmas and see you next year.
