How Does ‘Midpoint Matching’ Facilitate Trade Execution in a Dark Pool?

Midpoint matching executes a trade at the price exactly halfway between the National Best Bid and Offer (NBBO) from a reference public exchange. This method ensures both the buyer and seller receive a price improvement over the public quotes.

It's a common execution mechanism in dark pools because it is objective and guarantees a fair price without requiring pre-trade transparency. This facilitates quick, non-disruptive execution for large orders.