How Is the Price of a Trade Determined in a Dark Pool Environment?

Dark Pool prices are typically determined by referencing the current best bid and offer (NBBO) from lit exchanges, often executing the trade at the midpoint of this spread. This is known as 'mid-point matching.' Other methods include using the price of a primary exchange or a negotiated price between the two counterparties.

The key is that the price is derived from external sources, not the Dark Pool's internal order book.