Dark pools volumes have increased significantly over the last decade. This has raised concerns on the reliability of reference prices used by these pools, and asymmetric participant outcomes via “latency arbitrage”. Using a novel data set provided by the major UK exchanges and dark pools...

A new market design, an “Automated Market Maker” (AMM), completely automates trade matching and liquidity provision by leveraging decentralized finance technologies including smart contracts. Can AMMs improve the trading of traditional assets? We derive a model of an AMM’s equilibrium...