RT Journal Article SR Electronic T1 Shedding Light on Dark Liquidity JF Trading FD Institutional Investor Journals SP 22 OP 27 VO 2007 IS 1 A1 Jatin Suryawanshi A1 John Fox YR 2007 UL http://guides.pm-research.com/content/2007/1/22.abstract AB The emergence of alternative trading systems—often collectively referred to as “dark pools”—has added another node to the trader's decision tree. On the positive side, the increased competition in the market is a benefit to investors: more competition means more opportunities for better execution. Further, the ability to cross orders outside of the traditional displayed markets has offered traders the opportunity to maintain greater anonymity, and thus, reduce their orders' risks related to market impact. On the downside, the existence of multiple liquidity pools creates fragmentation in the market. Accessing liquidity is more complex, and the trader's job is more labor and time-intensive. Liquidity-seeking algorithms offer the ability to execute orders in a fragmented market with greater efficiency and effectiveness. But as we've seen, not all algorithms are the same. This article draws from our experience with algorithms accessing the non-displayed liquidity offered by the UBS internal liquidity pool, called “PIN.”