Dark liquidity cannot be seen by any potential market participant and its existence can only be imputed ex post facto. Dark liquidity is generally used to try and reduce market impact when trading large orders.
The Morgan Stanley announcement said NightOwl is available as a direct trading destination or indirectly through Morgan Stanley’s existing algorithmic trading offerings. The new algorithm utilizes Morgan Stanley’s proprietary analysis of dark liquidity pools to avoid interaction with those dark pools that disclose client order information through Indications of Interests, hence institutional investors can place trades without anyone detecting what they are trading.
NightOwl is currently available to clients.
More information is at www.morganstanley.com .