Dark pools explained

Dark pools are exchanges where people trade stocks anonymously. Paddy Hirsch explains how they work, and why the SEC is considering regulating them. #MarketplaceAPM #SEC #EconomicExplainers
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[@yungchuckkay766]

AMC brought me here

[@monybhardwaj]

Yep

[@DAJANEM99]

Same here, the Hedgies have been screwing the average person since the dawn of time.

[@shield707]

Me too buddy

[@SupremeLeaderWPK]

Same

[@isaiahcarvalho8]

Cause you missed out on gme

[@KillstreakerFTW]

KZbin blessing fellow apes with knowledge. Remember, Diamond hands 🖐💎

[@rockycomet4587]

Gamestonk!

[@URAWESOME94]

I seek knowledge in my quest for tendies.

[@katkane7448]

BRUTHUUURRRRRRRRRRRRR!!!!!!!

[@URAWESOME94]

@@katkane7448 this squeeze will be perfectly balanced, as all things should be. Ape strong.

[@bigrobwazhere6268]

This is the way.

[@3sgtecelica]

smart ape

[@ByMyRecords]

My man & Fellow Ape I am too here Seeking "TENDIES"

[@YuliJade]

The algorithm knew

[@mohamedayoub6499]

Seriously

[@shoonger001]

I had to question dark pools in order to end up here ..

[@BasetHamza]

Here because of AMC, excellent explanation. Thank you!

[@mikekaroules2820]

What is AMC please and what happened ?

[@djramboholidaylights]

After hearing about amc on dark pools.. the last 45 seconds of this video is priceless

[@katkane7448]

Good to see others gathering to learn for similar reasons. Keep digging!

[@Shometsuwu]

Ah, fellow wrinkle growers🦍💎

[@martinithechobit]

I never sell at a lost but I admit I was upset when i got into amc at 14 last week. I am true retard but this gave me hope. Time to actually average down.

[@ekuryluk]

Here because I’m not selling AMC. Anyone else?

[@truepatriot2797]

@@martinithechobit I bought in over a month ago at $14 and it tanked so I continued to buy and my average is now at $7.62. Hold strong 💪 this is gonna happen eventually. The hedge funds are digging deep to manipulate AMC. My opinion is they’ve gone all in on this trying to scare us all out and it’s gonna backfire on them.

[@jayp.3898]

This guy is a gold mine when it comes to explaining things! Bravo mate!

[@kaptenkrok8123]

The legality of this is absurd

[@mikekaroules2820]

Exactly. The whole point is that Wall Street and public trading is SUPPOSE TO BE PUBLIC. Everything us suppose to be clear and out in the open. This is insanity where billionaires become billionaires five / ten and 20 times over.

[@md5490]

ponzi scheme to fleece the 99%... I've switched to real estate after seeing this video.. good luck 👍

[@teflonmusk11B]

This a good thing imagine someone dropping millions of shares at once on the company your most invested in Now your beloved company just lost 30-45% in less than a minute and can start a sell of by retail investors. I work for Merrill as an analyst so I may be biased to the ways of Wall Street but trust me they have there purpose .

[@klyman79]

​​@@teflonmusk11Boh so its for our benifit, kinda like everyone gets a trophy.. No. If someone dumps and my stock goes down then thats the process.. I will hope someone will equally buy maybe me for that lower price🤦🏾‍♂️🤦🏾‍♂️ and bring it back up.. Simple and right we dont need false protections that allow for fraudulent activities period..

[@jgfunk]

Love these videos. The information is always explained in a clear and easy to understand manner.

[@Shometsuwu]

May you fellow wrinkle growers experience a banana bounty in the coming days🦍💎 Edit: WE GOT SOME BOUNTY OOH OOH

[@jericho123456]

I couldn't hold my giggle after I heard how traders in dark pool whisper to each other xD Thank you! It was very entertaining:)

[@lordvenom4419]

It's a true facts

[@JB-nu5ih]

Wow. Video uploaded 11 years ago. SEC needs to step in.. whats happening with AMC is wrong. I can only imagine how powerful these dark pools have become by now.

[@learnanddeliver]

Exellent, very nicely explained. I came across dark pools in our one of our classes. Now I understand it very well. Thank you for the nice video

[@kennethclass]

Doing some DD on AMC 🦍🚀💎🙌🏾

[@CusomPCs]

Have you figured out that it's a shit company with shit leadership yet? GME or bust.

[@sandeshkshetri3867]

Loved the explanation. Especially the marker drop!

[@jklfghjkl]

Great explanation. An eye opening video on the privileges of big investors.

[@MatteoCeccarini]

A very clear explanation, thank you!

[@ManuelWillCom]

wow i gotta find out more about this... great vid again

[@RedondoBeach2]

Paddy, please make a video focused on Improved Prices. Include information on characteristics of a typical investor who is able to get improved pricing and why most other investors cannot get improved pricing.

[@samArty123]

THANKS for the great videos Hirsch

[@aritragupta4182]

Whoa-I remember binge-watching these around 2009-10, right after the GFC. Exciting times (for me) 😊

[@merrick8000]

is this at all relevant to GME and AMC

[@tinamunich3107]

it kinda is because if amc and gme get traded through darkpools from PE to PE noone will ever know how many shares there are truly on the market, they could sell borrowed shares on the darkpool and then burrow them again on the free market... Basicly ending up with lending shares from Fund A selling to private equity on dark pool, the private equity would then lend out those shares again on the free market, person who lend from fund A can lend from fund B now to fill the shorts, now he can burrow shares from fund A again and sell them on the market and doubled the amount of the shares whiche exist if not tripled at that point.

[@JohnDoe-fk3pp]

hmm love how this pops up in my feed as we approach the MOASS

[@ginnymonroe4918]

Hi Paddy Hirsch, thanks for this I was R&Ding "dark pools" for a story. Thanks Ginny Monroe

[@anselon7]

will darkpool trade affect Uber stock tomorrow am ??

[@katrije1665]

About to take an exam concerning this topic. Thank you so so so much for explaining!!!

[@antoniogriffin7135]

What exam is it?! Did you ahead take it?

[@broodyking]

“leave you needing a very large drink” god I felt that 🍻 hope you’re doing alright 11yrs later

[@Meginnis31]

Does the size pop up on time and sales? And would it pop up all in one? Or multiples

[@lulualtuwaijri5422]

thank you! You made it CLEAR

[@RBmusic2000]

A summary at the end would be amazing. Theres lots of great information here and it's hard to break it down when your hearing new things for first time.

[@chicanotrades]

Replay

[@nguyenpham6595]

Investment book brought me here!!!!❤ thanks you very much

[@Meginnis31]

Does the size pop up on time and sales?

[@cs2097]

secret ape hideout... they would never expect us hiding in their own dark pools building our own infinite one

[@emresarican9315]

Lol man i really loved your presentation. thank you :)

[@bohemiancasanova5538]

Great explanation, thank you

[@gregortidholm]

great explanation!

[@cosmosgato]

Transparency is always (often) a very good rule.

[@shaylo2006]

Thanks for the video! How about making a video about flash trading/ or those high power computers that grab my trades in a nano-second and look at them?

[@bullishbearstrading]

Very good explanation!

[@thecandyman9308]

I accidentally clicked on this video b/c I've had tarry stool lately and I thought the title said "Dark Poo Explained". Now i'm day-trader.

[@pauldiam0nd]

It's like the TOR or CRYPTO for exchanges/brokers ...?

[@JuansAdventures]

Apes together strong!

[@ByMyRecords]

Ape Brother!

[@rataflaca1]

what is the difference between dark pools and blocktrades(blockhouse)?

[@NotMitch69]

Thank you for this (all these years later). From a positive perspective, the large funds certainly have a use case for using what are essentially anonymous pools. That said, as you intimated at, THE FACT that shares are trading hands is viewed as materially significant information because it plays into the psychology of the markets. What this presentation doesn’t show is how dark pools can be exploited not only for anonymous trading but also warehousing, when shares that sit here are not matched.

[@barbobrien9318]

Well done.

[@cryptopathfinder4536]

does the hf's have to expose the trade publicly the same day? or they have time? this same method is done with short sales?

[@abhishekadhikari4965]

i am not clear yet. So, does the transaction done in dark pool eventually be reported to the regular trading market or does it impact the price anyhow?

[@HoLeeFuk69]

I don't believe it shows the actual transactions just who is using it and how many trades they made. If someone were to sell borrowed shares to the market, use that capital to buy in the dark pools, then sell those shares into the market that definitely has an impact.

[@kevtherev8194]

It seems he was speaking from experience (throw the pen down) about needing a Very Large drink

[@emmanuelibus]

Additional problem, as we now know, and has been admitted by the SEC and Gary Gensler, that market makers are also using dark pools to route retail orders away from lit markets.

[@christ7199]

GOOD VIDEO! TOS Renko bars left on ATR 20 days will let you know on any given day what the market is doing. Approximately a 75 to 85% accuracy. Just do NOT set the box size! Look for the color of the bar at close. If it's green, go long. If it's red, go sort. If it's trading in a range, watch carefully. Best Regards, CT

[@damon9863]

Sam is clearly the ancient sea monster with a neck like that.

[@8djd]

Its so he can pop his head out the water to take a breath of air

[@daemonzap1481]

POV: You've been reccomended this after losing nearly half your money to hedge funds.

[@kilier8586]

POV:Only lost profit if u bought a $3

[@Chitownprince83]

POV: You only lose if you sell 😉 💎🙌🦍🚀🌙 🍿

[@Slatt33-z4y]

I’ve lost nothing I’ve gained EVERYTHING

[@mariomartinez8645]

This aged well

[@DCUPtoejuice]

outstanding

[@romario5080]

Well what happens when individual investors orders are routed through dark pools? We weren't allowed then now they're being routed there to supress buying pressure

[@kingtigercrownestate9102]

What is the advantage that people get by using dark pools? I am still not totally clear on that?

[@JustAnotherHuman33]

So basically it's like a private sale off and buy? So the public stock market won't be able to interact with this private Trade?

[@oskamandala8542]

Amc brought me here as well ahaha!, I intentionally watched a video posted way before the AMC reddit saga had begun, that way I'd get unbiased information.

[@pradeepkumar-ew1ze]

How thier demat account is updated, if the exchange is not involved 🤔

[@kevtron]

Even if the two firms are private, the trades are still printed to the tape, just after a delay. No trade can happen without it being known

[@evoii323]

Lol this was very informative, and funny 2:25

[@zaNE-vu5lc]

thank you

[@stozies1221]

Love to see there are people of culture here.

[@InventaChris]

What's the minimum amount needed for individual traders & investors to trade in dark pools?

[@Vlbhk91]

Xspa has a lot of Dark pool, those shorts need to cover Monday

[@Tree0fLife]

just finished watching my 2nd video of yours. is it always the case that at the end the subject is always in need of a large drink? 😂

[@marketplaceAPM]

Yes.

[@Jewiceee]

Learning!!!

[@JEli11]

So dark pool trades don't show in the price charts?

[@juansaucedo4366]

#AMCGANG

[@tylersawyer8677]

How is the price computed within the dark pool? Does the dark pool itself establish a bid/ask? If not, how do potential buyers and sellers know what is being offered in the dark pool if they can't "see" each other?

[@AirelonTrading]

It still goes to the SIPS feed for the fill

[@myles5158]

@@AirelonTrading what is SIPS?

[@pacificnorthwest768]

Ape grow small line in brain from this dr. professor.

[@chicotata]

I’m an 🦍 so it’s hard to comprehend. But isn’t announcing after the fact the same thing. The market reacts either way? How do we know if they buy in the dark pool but sells to the nyse? Ape really confused 🙈

[@JB-yf9dv]

Great vid, whispering part had me creased lol. #AMC

[@akashicmelanin]

14 years ago, advertised for a few years, interesting how things connect

[@akashicmelanin]

showing in ads recently

[@kingslots3449]

I could understand this LoL 🤣🤣.. Thank you.

[@kevcleveland6885]

PROFESSOR 👍

[@ashleyisachild]

Wow so 11 years ago, the SEC toyed with the idea of regulating the one thing that was preventing the stock market from being egalitarian. Thanks SEC.

[@partsshooter]

Seem like things only get worst

[@ashishlanje2717]

can i see that trade in tape?

[@MrPikachu53]

SEC: Doesnt give a shit about dark pools ALso the SEC: Crypto?? Wait thats illegal.

[@DrKumkar]

I too seek knowledge on my quest

[@jokur8935]

very cool very swag i like it

[@patalwell]

The whole point of the dark pool is to prevent volatility in the exchange price, but as the speaker in the video notes it leaves the retail investor at the whims of wholesale transactions. It's a big deal because it could potentially serve as a mechanism for wholesale investors to rid themselves of toxic financial assets prior to there being a systemic issue. But more to the point of the matter, we simply do not have the technology to detect fraudulent behavior. There is far too much data being collected at the points of exchange to make accusations or hold traders accountable for unethical decisions. Its simply a matter of whether or not wholesalers should have the same privileges as retail investors. Savings is at stake and in the midst of the chaos prior to a crash dark pools are a great exit for pension funds (billions of dollars worth of assets), but a disadvantage for traders monitoring their own stocks on a public SIP.

[@erikbeier9515]

“A mechanism for wholesale investors to rid themselves of toxic financial assets”? For every seller, there must be a buyer. So if a wholesale investor dumps $1 B of stock that he think will drop, someone just as big needs to buy. If the asset is truly toxic, they lose, not the retail investors.

[@LatinDanceVideos]

You must have deliberately missed key issues. Dark pools provide secrecy, enable insider trading, enable large funds to manipulate the market and provide advantage to large financial investors

[@kalpesh0]

But they also help in not breaking the technical patterns...

[@Mark_Chandler]

you could probably front run trades on the exchange knowing about a large trade in a dark pool. However, if you are not jumping in and out of trades, but holding for years, this wouldn't affect you.

[@bitwise7123]

Question, when the hedge funds need to cover their shorts, can they seek institutions willing to sell to them without going to the public exchange first? Basically, I fear all of the apes in AMC will hold out, but the institutions in the dark pool has first dibs.

[@jesusflores3290]

#AMC

[@blues4never]

One odd detail: the Dark Pool transactions have not, in fact, concentrated to large-scale transactions. Seems to be more in line with odd-lot hedge fund executions. A second detail: front-running is apparently an automatic feature of the game for a sell-side that uses a Dark Pool to do client execution. How nice.

[@LatinDanceVideos]

Front running & odd lot executions needs more explanation.

[@user-bd7ul5bi5x]

is this video 10 years ago?

[@jaydavidson4592]

Soooo, the billion dollar question is; can a large firm short a stock on the open market, then cover their shares through a dark pool?....as to drive price down, but not back up. Inquiring minds would like to know. I haven't found one single answer to this

[@themiseducationoftheameric7407]

Great question

[@partylouis9851]

When you sell $GME are you accepting $1K for your sale or are you expecting $50M? That's my answer. They can't buy pretend shares to close. I don't know where else they're going to buy +1 billy shares from, if not from us. When they naked short, it's assumed they can get the shares, they don't and then they FTD. They kick that can. But if they bought +1 billy pretend shares in dark pools, well ... we're still holding all of the synthetics they rehypotheticated. So those +1 billy pretend shares they "bought" never show up. They weren't delivered. So they didn't close.

[@iFight732]

How is it that a private investor like myself can monitor dark pool activity?

[@wilkinsune]

This video is 12 years old. Not a lot was done about Dark pools since.

[@chioptnstdr3448]

What’s up AMC family

[@dantothemoon9154]

To all apes around the world. Be strong, buy and hold! We are in the Endgame. In the near future you will have your dream life. Seeds of kindness will bloom and our time to create a better tomorrow will come

[@cooool2222]

I still find it difficult to understand why Alisa would be so interested in a Dark Pool deal. Going by Paddy's example, if she was buying it at the Stock Exchange; she pays $150 for the first block and $120 for the last block; on aggregate she would be paying less than buying all of it at $150. Can you please explain why she would be interested in a Dark Pool trade?

[@cooool2222]

Anirudh Krishnan I guess I am answering my one question here. If she buys more shares then that would drive the price up too. Basic Demand and Supply.

[@Deecimal]

Anirudh Krishnan ur right, also I guess if the stock was broken up into blocks, Alisa might not be able to obtain all of it at once as there are other buyers. Much more convenient just to buy a single whole block via dark pools.

[@jeniabramson]

must be frustrating to the companies whose shares are involved...

[@ryans3001]

yes, yes, this is good

[@oscarvillasana209]

How is this legal

[@richunclejoey2249]

I trade commodities..I am very annoyed that the COT report comes out a week late while traders can access retail sentiment updated in some cases every 15min

[@scottoswald7535]

GME brought me here!

[@alexm566]

The problem is the HFTs which ruined it for the regular investors. I don't blame the big guys for finding a way out of this madness.

[@cadehaak]

i was your 100,000th viewer

[@Sixx3r]

I seek knowledge in frustration since I can't punch KennyG directly in the face.