Feeling the liquidity pinch? Then move over to the Dark side
In the never-ending quest for liquidity and best execution, US brokerage houses are helping hedge funds use the force of technology to discover hidden pools of opportunity. Oh European managers, writes Phyllis Feinberg in New York, dark liquidity is also coming to a galaxy near you soon....
It's no secret that one of the most important things to hedge fund managers is their privacy. They will go out of their way to keep their activities hidden from other hedge funds and from investors who might benefit from knowing what they're up to.
So it's really no surprise then that trading venues called "dark pools" have become a popular way for many hedge funds to handle their equity trades.
"Three out of four buy-side firms sent their orders to an (internal) crossing network by the end of
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