RT Journal Article
SR Electronic
T1 Managing Risks and Avoiding Pitfalls when Interacting with Non-Displayed Liquidity
JF The Journal of Trading
FD Institutional Investor Journals
SP 34
OP 38
DO 10.3905/jot.2008.708834
VO 3
IS 3
A1 Richard Johnson
YR 2008
UL https://pm-research.com/content/3/3/34.abstract
AB The proliferation of Alternative Trading Systems in the U.S. has had a profound impact on equity trading. With estimates of the total volume executing in crossing networks around 15%, any trading strategy that does not interact with non-displayed liquidity pools will miss out on liquidity opportunities. This article focuses on some practical considerations in implementing a trading strategy that interacts with non-displayed liquidity. It will outline some potential pitfalls—particularly those that can affect the portfolio-driven investor—and provide a framework for avoiding them.TOPICS: Equity portfolio management, exchanges/markets/clearinghouses