In a Dark Pool trading venue:

Question

Quizplus · Accepted Answer

In a Dark Pool trading venue, the size and price of the order is not disclosed to the participant and the price is between the best bid and asked price. This is done to ensure anonymity and prevent market impact.

Answer: D
 Traders should not expect prices better than what could be quoted in a conventional market as Dark Pools are not meant to outdo conventional markets. They are just alternative trading venues that offer anonymity and prevent market impact.

Answer: E
 Dark Pools do not constitute a large portion of total transactions compared to activity in conventional markets. While their popularity has grown, they are still a small percentage of overall trading activity.

In a Dark Pool Trading Venue