How Do Dark Pools Differ from Both RFQ Platforms and CLOBs? ⎊ Path

How Do Dark Pools Differ from Both RFQ Platforms and CLOBs?

Dark pools are private forums for trading securities, typically large block orders, that do not display their quotes publicly. Their primary goal is to minimize market impact by ensuring anonymity and preventing pre-trade price discovery.

CLOBs are fully transparent and public. RFQ platforms facilitate bilateral negotiation but are also private in the quote-solicitation phase.

Dark pools offer continuous matching based on existing market prices, whereas RFQ is quote-driven and CLOB is order-driven.

How Does Latency Affect Execution Quality on Both RFQ and CLOB Platforms?

What Is ‘Price Discovery’ and How Is It Affected by Dark Pools?

How Does ‘Market Impact’ Affect the Choice between RFQ and CLOB for a Large Options Order?

What Is the Impact of Latency on Execution Quality in Both CLOB and RFQ Systems?

How Do Dark Pools Relate to the Institutional Preference for Off-Exchange Trading?

What Is the Risk of ‘Adverse Selection’ in a Dark Pool?

What Are the Key Differences between an RFQ Platform and a Central Limit Order Book (CLOB)?

Why Are Illiquid Crypto Options Often Traded on RFQ Platforms Instead of CLOBs?

Glossar

Dark Pools

Venue ⎊ Dark Pools in the cryptocurrency derivatives context are private trading systems that allow institutional participants to execute large orders anonymously, shielded from the public visibility of order books.