Corporate Advisory Insight: Dark Pools

Posted by admin as stock price

Leisa Bugge from Thomson Reuters’ Corporate Advisory Services group discusses dark pools.

Transcript:

As we discussed in a previous video, dark pools are becoming ever more prevalent.

I’m Leisa Bugge and this is the second video in a series on dark pools.

Since our last video just over a month ago, there have been several articles written in notable publications, including two in the Wall Street Journal.

With our Corporate Clients asking more questions since our last dark pools video we thought it timely to talk about the topic further and open the discussion to new venues.

One common question is “What do dark pools mean for my stock price”. Good question, and while the answer is not straight forward we believe that it is worth discussing.

Do dark pools now call into question the Efficient Market Hypothesis? With broker-dealer owned, independent and exchange owned dark pools, does it matter which dark pool the stock is traded in?

We know many different investors use these trading venues, most notably secretive hedge funds, but also the plain vanilla institutions that populate the top of your shareholder lists.

The IR Professional and others alike should do what they can to educate themselves on this topic, because as we said this trading venue is becoming more widely used as the days go on.

For example, the big news last week was the Wall Street Journal reporting the NYSE and NASDAQ will be allowing clients access to dark pools as a way to increase revenues.

Now this is something that must affect a stock’s price, or is it?

Join our blogs through your Thomson One Investor Relations platform where we will help answer and debate these questions. You can find IR Hub under the Tools tab.

I’m Leisa Bugge with this Corporate Advisory Insight.

Duration : 0:1:47

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