How Do Dark Pools Relate to the Institutional Preference for Off-Exchange Trading?
Dark pools are private, non-public trading venues that allow institutional investors to trade large blocks of securities anonymously. They directly address the institutional preference for off-exchange trading by minimizing market impact and information leakage, as orders are not displayed on a public order book before execution.
Glossar
Institutional Preference
Allocation ⎊ Institutional preference within cryptocurrency derivatives manifests as a capital deployment strategy, prioritizing instruments exhibiting favorable risk-adjusted returns relative to traditional asset classes and established derivative markets.
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.