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To: Don Green who wrote (864)10/6/2021 6:45:27 PM
From: Don Green  Read Replies (1) | Respond to of 923
 
What Dark Pool Trading Volume Says About AMC StockDark pool activity has been a hot topic among AMC investors, as trading volume seems elevated as of late. Wall Street Memes discusses the impact of dark pool trading on AMC stock.
Bernard Zambonin Oct 6,2021 TheStreet.com

dg>>>Saving this article for future reference on how this story will play out Part Four

AMC investors’ long battle against dark pools is far from over. Apes believe that lack of trading transparency drags ( AMC) - Get AMC Entertainment Holdings, Inc. Class A Report stock price, while market makers and large investment firms with short positions benefit.

Figure 1: Dark pool image.

Forex Academy

Today, Wall Street Memes takes a closer look at this topic and discusses the implications of dark pool trading on AMC stock.

(Read more from Wall Street Memes: AMC Stock: Bullish Case In The Face Of Market Jitters)

What are dark pools, is it legal? Dark pools are an alternative trading system to the big exchanges — like the NYSE, for example. These systems provide certain investors with the ability to execute large trades without having to publicly disclose the transactions until execution is completed.

The main purpose of dark pools is to generate liquidity, primarily for the benefit of buy-side institutions, without much disruption to asset prices. High frequency and high volume traders may take advantage of dark pools, since they have the need to move swiftly in the market.

Dark pools are considered legal. However, the system is criticized for lack of transparency around trade operations. The prices traded on dark pools may diverge from the ones displayed on public exchanges, which can supposedly handicap retail investors.

AMC’s dark pool trading volumeData reported of AMC trades suggests that an average of 64% of shares bought and sold over the past 20 days have come from dark pools. As a benchmark, in the US, estimates suggests that 40% of all executed trades are completed in dark pools and about 20% in Europe. An actively traded stock like Apple ( AAPL) - Get Apple Inc. (AAPL) Report sees 50% of its activity happen in dark pools; Tesla ( TSLA) - Get Tesla Inc Report 53%; and Microsoft ( MSFT) - Get Microsoft Corporation (MSFT) Report 40%. Also, 43% of “meme” peer GameStop’s ( GME) - Get GameStop Corp. Class A Report trading volume happens in dark pools.

AMC’s elevated dark pool trading helps to raise retail investors’ suspicions. Market making firm Citadel Securities tweeted for the first time on the topic and defended itself from accusations of retail trading irregularities, calling it “absurd”.

What AMC investors should expect It is possible that dark pools may impact the equities market and stock prices. What stands out in the case of AMC is that the volume of shares traded in dark pools is higher than average. In spite of it, AMC stock has already rallied viciously twice this year.

Regarding the apes, it is worth acknowledging the consequences of their vocal approach to this topic. Legal measures regarding dark pools may come to light soon, since SEC chairman Gary Gensler has shown that he is paying close attention to the matter.

Apes are likely to keep following the discussions closely. Their desire to see AMC shares head to the moon depends on it.

Twitter speaksAMC apes, investors and enthusiasts: what do you believe is missing for AMC stock go to the moon? If none of the options below pleases you, feel free to comment your answer.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)