The way stocks are traded in the United States is changing fast. In the last quarter of 2024, public stock exchanges like Nasdaq and the New York Stock Exchange handled less than half of all stock trades for the first time ever. Now, private trading venues called dark pools are doing more business than ever before.
Some of the biggest trades are happening out of sight, in places most regular investors can’t see. This has started a new debate on Wall Street: Is this change good for the market, or does it make things less fair?
What Are Dark Pools?
Simple Definition
A dark pool is a private computer network that lets big investors—like banks and hedge funds—buy or sell large amounts of stock without showing those trades to the public right away. These trades are “in the dark” because they’re hidden until after they’re finished.