Darker Than a Dark Pool? Welcome to Wall Street's 'Private Rooms'

qweiop · 2025-03-17T17:49:47 1742233787

I remember reading about dark pools and asking a friend in finance if the sector really is as corrupt as it sounds, his reply? "Oh much more"

mertleee · 2025-03-17T17:29:06 1742232546

Historically, the "private dark room" has always been a mechanism of goofy elites.

To an extent these will always exist - but what we define as investigative journalism will likely decide whether we hear about these at all haha.

jimbob45 · 2025-03-17T17:29:56 1742232596

Carlos Cabana, head of equity sales and trading at CastleOak, dubs the room a “diversity pool,” because the participants are all minority-operated brokerage firms. While in this instance CastleOak doesn’t know specifically who is on the other side of every trade, it knows it will be one of about 10 counterparties who meet certain eligibility criteria related to ownership and investment goals.

I am convinced that they only added this bit to make sure people would argue about skin color and ignore the implications of the rich making sure the peasants aren't allowed to play the same game as them.

dheera · 2025-03-17T17:49:46 1742233786

I've been wading through terabytes of financial data over the past month. (I'm an ML/AI software engineer trying to create a trading bot that makes me more consistent income than buying and holding through a Trump administration.)

This is some of the data I'm looking at. NVDA price on a particular day vs. average position of trades in bid ask spread aggregated over 10 seconds, on all the exchanges it is being traded on. When it is close to 1, it is trading at close to the NBBO ask; when it is close to 0, it is trading at close to the NBBO bid.

https://imgur.com/a/lcCwDsj

One of the things I found is that the dark pool trades predict price action very well on a few-minute time horizon. "FINRA Alternative Display Facility" on the 2nd plot from the top is all the darkpool trades. If I had access to dark pool trade data in real time I think I could piggyback off the manipulators and make bank.

Unfortunately the SEC only requires them to report transactions within 15 minutes, not in real time.

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