What Is the Primary Benefit of a Dark Pool for an Institutional Trader?

The primary benefit of a dark pool for an institutional trader is the ability to execute large block orders without publicly revealing their intention. If a large order were placed on a public exchange, it would signal the trader's intent, potentially moving the price against them and attracting front-runners.

Dark pools allow for price discovery and execution with minimal market impact, ensuring the institution gets a better average execution price for their large volume trade.