The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Trading: Banks swim in dark pools

Hope to improve prices and minimize fees and impact on market.

In May, Goldman Sachs, Morgan Stanley and UBS announced bilateral agreements to offer reciprocal access for algorithmic trades to each other’s "dark pools".

Dark pools are matching engines for non-displayed, anonymous trading away from the public markets.

The arrangements, which apply to US stocks only, connect three of the largest investment bank-operated dark liquidity pools in the US – Goldman Sachs’s Sigma X, Morgan Stanley’s MS Pool and UBS’s Pin ATS – but stops short of full integration. The banks involved have also left open the possibility that they might connect to other dark pools in the future.

By linking their internal dark pools, the banks hope to improve the proportion of trades executed away from the public market, giving them a chance to offer price improvement, minimize the market impact of trades and save on exchange fees.

"We’re confident that providing our respective clients access to each other’s liquidity will achieve even better crossing results for our clients in an increasingly fragmented market," says Greg Tusar, managing director, Goldman Sachs Electronic Trading.


For the investment banks involved, simplifying the increasingly complicated trading environment was also an objective.

"Our clients are looking for incremental liquidity without having to split each order across many different algorithms," says Will Sterling, managing director, UBS Electronic Trading.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree