While dark pools can keep their transactions secret from the public exchanges during trading hours, are they required by regulation to declare the volume transacted after the market close at the end of the day? I was wondering whether the end-of-day stock price data provided include the volume transacted in the dark pools.

  • my understanding is that they don't have to, they are just market participants exchanging shares away from the exchange, like if a group of people met up at the park and were exchanging shares. at the same time, I think certain market participants need to report volume regardless of where they do the exchanges. Looking forward to an official answer though
    – CQM
    Commented Oct 5, 2013 at 17:30
  • Is this question about the USA?
    – Flux
    Commented Jul 1, 2021 at 2:00

2 Answers 2


Members of the Federal Reserve System keep track of what money a bank has (if it's not in the vault), who owns what shares of stock, who owns what bond, etc.

The part of the Federal Reserve System that tracks stock ownership is the Depository Trust Company (DTC). They have a group of subsidiaries that settle various types of security transactions.

DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission.

There's lots of information on their website describing this process.

DTCC's subsidiary, The Depository Trust Company (DTC), established in 1973, was created to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making "book-entry" changes to ownership of the securities. DTC provides securities movements for NSCC's net settlements1, and settlement for institutional trades (which typically involve money and securities transfers between custodian banks and broker/dealers), as well as money market instruments.

Black pools are trades done where the price is not shared with the market. But the DTC is the one who keeps track of who owns which shares. They have records of all net transactions2.

The DTC is the counterparty for transactions. When stock moves from one entity to another the DTC is involved.

As the central counterparty for the nation's major exchanges and markets, DTCC clears and settles virtually all broker-to-broker equity

1. This is the link that shows that settlements are reported on a "net basis".
2. If broker A sells 1000 shares of something to broker B at 8 and then five minutes later broker B sells the 1000 shares back to A, you cannot be sure that that total volume will be recorded. No net trading took place and there would be fees to pay for no reason if they reported both trades.

Note: In dark pool trading quite often the two parties don't know each other. For shares (book-keeping records) to be exchanged it has to be done through a Clearing House.


"On June 2, 2014, to stem public outrage over claims of rigged markets, FINRA, the self-regulator and good buddy of Wall Street that conducts Wall Street’s private justice system, began to report publicly the three-week old trading data from the Dark Pools. But instead of providing daily reports with execution times for stock trades included, the data is lumped together for the entire week. That’s makes it a lot harder, if not impossible, to see if there is collusion happening by a banking cartel." --Wall Street on Parade.

Also, the SEC has raised concerns: "There is a risk ATS operators may be internalizing the transactional activity and selling institutions securities at full price that, in essence, may not exist" read that again: "securities that don't exist"! https://www.sec.gov/comments/s7-23-15/s72315-25.pdf

And finally, Lucy Komisar: https://youtu.be/5wlcQfZW0a8

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