PT  - JOURNAL ARTICLE
AU  - Richard Johnson
TI  - Managing Risks and Avoiding Pitfalls when Interacting with Non-Displayed Liquidity
AID  - 10.3905/jot.2008.708834
DP  - 2008 Jun 30
TA  - The Journal of Trading
PG  - 34--38
VI  - 3
IP  - 3
4099  - https://pm-research.com/content/3/3/34.short
4100  - https://pm-research.com/content/3/3/34.full
AB  - The proliferation of Alternative Trading Systems in the U.S. has had a profound impact on equity trading. With estimates of the total volume executing in crossing networks around 15%, any trading strategy that does not interact with non-displayed liquidity pools will miss out on liquidity opportunities. This article focuses on some practical considerations in implementing a trading strategy that interacts with non-displayed liquidity. It will outline some potential pitfalls—particularly those that can affect the portfolio-driven investor—and provide a framework for avoiding them.TOPICS: Equity portfolio management, exchanges/markets/clearinghouses