Japan Dark Pools deal reached to 5% of total volume in 2017

Tsuyoshi Otsuka, chief strategist at the Tokyo Stock Exchange, has issued a new warning to Japanese regulators, and this time he estimates that the total value of Dark Pool trade has reached 5% of total traded volume in 2017. Dark Pools appeared in the United States in the 1980s as a way for fund managers to trade large blocks of shares without revealing their intentions. According to Otsuka, the share of Dark Pools could grow to 7% in the next five years, as there are not enough regulations to deal with.

Here are a few statistics on developed markets and how MiFID 2 will influence.
In October, about 29% of total US OTC trading is happening through Dark pools. In Europe, about 10% of stock trading is made through Dark Pools, although the real value may be higher because banks do not have to account for some types of transactions. The latest financial regulation, known as MiFID II, will reduce that figure as it will limit the amount of trade to each fund that can be traded through Dark Pools to 8%.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

Bloomberg: Dark Pools Are on the Rise in Japan

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