I notice on my TDDI trade confirmations that quite a few of my recent trades were filled in "TriAct MATCH Now", a dark pool:
https://www.tdsecurities.com/tds/content/CM_FAQ?language=en_CA
As I understand it, the dark pool is a marketplace where trades are matched, but the size and price of orders is not revealed (unlike an open market like the TSX or Alpha where you can see orders from others). The big problem here is lack of transparency. It's not an open market, and you can't see details of trades.
My concern is, am I getting the best fills possible in this dark pool? Do Canadian regulations ensure this? What I'm concerned of is that I may be deprived of a better match in an open market because TD routes me to the dark pool, possibly to serve their own interests.
http://www.investopedia.com/articles/investing/060915/pros-and-cons-dark-pools-liquidity.asp
This page says that prices in dark pools can diverge from the public market, e.g. the price may be lower in the dark pool because big institutions are dumping shares secretly. Doesn't this mean that I can be getting ripped off in the dark pool, if I am the person they are selling to?
https://www.tdsecurities.com/tds/content/CM_FAQ?language=en_CA
As I understand it, the dark pool is a marketplace where trades are matched, but the size and price of orders is not revealed (unlike an open market like the TSX or Alpha where you can see orders from others). The big problem here is lack of transparency. It's not an open market, and you can't see details of trades.
My concern is, am I getting the best fills possible in this dark pool? Do Canadian regulations ensure this? What I'm concerned of is that I may be deprived of a better match in an open market because TD routes me to the dark pool, possibly to serve their own interests.
http://www.investopedia.com/articles/investing/060915/pros-and-cons-dark-pools-liquidity.asp
This page says that prices in dark pools can diverge from the public market, e.g. the price may be lower in the dark pool because big institutions are dumping shares secretly. Doesn't this mean that I can be getting ripped off in the dark pool, if I am the person they are selling to?