Dark Pool Volume
Dark Pool Volume — Off-exchange trading share influencing price discovery and lit-market toxicity.
Definition
Dark Pool Volume refers to off-exchange trading share influencing price discovery and lit-market toxicity. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Price formation at the venue layer decides whether a signal survives implementation. When off-exchange trading share influencing price discovery and lit-market toxicity shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what dark pool volume is saying. If off-exchange trading share influencing price discovery and lit-market toxicity moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Measure spread, queue, and impact at your size; paper fills are not a desk edge. Prefer a short written null hypothesis for Dark Pool Volume: what would falsify the current reading in the next window?