Kraken just introduced "Dark Pool"

[sickpig]

We are pleased to announce the Kraken dark pool, a new feature that allows clients to discreetly
place large bitcoin orders and execute against similar sized orders at potentially better prices.
Kraken is now one of the few exchanges offering a dark pool for bitcoin.

The Kraken dark pool is an order book not visible to the rest of the market. Each trader only knows
their own orders. Traders can anonymously place large buy or sell orders without revealing their interest
to other traders. Typically, outsized orders, when seen by other traders will cause the market to move
unfavorably, making it more difficult to fill the order at the desired price. This unfavorable price movement
may be avoided in a dark pool.

Kraken will charge an extra 0.1% for dark orders. Dark pool trading is available to all Kraken clients
with accounts verified to Tier 2 or higher (for information on the account tiers click here). The minimum
dark order size is 50 Bitcoins and only limit orders are supported. The dark pool will accept orders
for trading between Bitcoins and EUR, USD, JPY or GBP. Dark pool pairings are designated by a “.d”
extension (e.g. XBT/EUR.d or XBT/USD.d).

[Morecoin Freeman]

Hidden orders do not come with an extra charge at bitfinex.

[stonerider]

Why is it a "pool"? Shouldn't it be a "Dark Exchange"?

[sickpig]

Why is it a "pool"? Shouldn't it be a "Dark Exchange"?

The Kraken dark pool is an order book not visible to the rest of the market. Each trader only knows
their own orders. Traders can anonymously place large buy or sell orders without revealing their interest
to other traders. Typically, outsized orders, when seen by other traders will cause the market to move
unfavorably, making it more difficult to fill the order at the desired price. This unfavorable price movement
may be avoided in a dark pool.[/b]

[Amph]

Hidden orders do not come with an extra charge at bitfinex.

well 0.1 is still a fair charge i guess, nothing to crazy

one should investigate how large can be these order in both exchanges, to make a clear comparison, not based on fees only, you are aware of some limit with bitfinex?

[ayesha201006]

Thanks, but I like to see the order books.  To me this seems like a way for them to make some extra coin, but taking away information.  Interesting.  I saw the title and was tickled because kraken from what I understand requires a high level of personal info compared to other exchanges.

[BillyBobZorton]

Thanks, but I like to see the order books.  To me this seems like a way for them to make some extra coin, but taking away information.  Interesting.  I saw the title and was tickled because kraken from what I understand requires a high level of personal info compared to other exchanges.

It's a doubled sword. Sure you loss information, but others too... so way harder for a whale to try to manipulate the market. It is a really concept. I have not seen this done before. I would like to see how the market behaves when no one knows each other's hands.

[gentlemand]

It's a doubled sword. Sure you loss information, but others too... so way harder for a whale to try to manipulate the market. It is a really concept. I have not seen this done before. I would like to see how the market behaves when no one knows each other's hands.

Gox ran a dark pool. They're also very common in stock markets. Other crypto exchanges might well be running them too. They serve a purpose but it is a somewhat murky arena.

[NorrisK]

I think it can be a good alternative to having to buy large quantities of bitcoin without affecting the market. Somebody who wants to buy tens of thousands btc otherwise has to go through all sorts of annoying roads.

[JerryCurlzzz]

Hidden orders do not come with an extra charge at bitfinex.

Actually, they do. Normally, a limit order is executed with a maker fee, which is lower than a taker fee. Hidden orders are charged as takers, even though they are limit orders. So they actually do come with an extra charge.

[WhatTheGox]

Enjoyed watching this video yesterday with the kraken CEO https://www.youtube.com/watch?v=zoTvEsA970M

Seems like a decent guy, i will be moving some crypto there to support them - makes sense also since they are dealing with my mtgox fund.

[Fabrizio89]

Yeah we had a hangout in whaleclub with them, we will have more in the future. Stay tuned! They will join TS from time to time to give assistance, answer questions or just enjoy the random conversations

[NUFCrichard]

We are pleased to announce the Kraken dark pool, a new feature that allows clients to discreetly
place large bitcoin orders and execute against similar sized orders at potentially better prices.
Kraken is now one of the few exchanges offering a dark pool for bitcoin.

The Kraken dark pool is an order book not visible to the rest of the market. Each trader only knows
their own orders. Traders can anonymously place large buy or sell orders without revealing their interest
to other traders. Typically, outsized orders, when seen by other traders will cause the market to move
unfavorably, making it more difficult to fill the order at the desired price. This unfavorable price movement
may be avoided in a dark pool.

Kraken will charge an extra 0.1% for dark orders. Dark pool trading is available to all Kraken clients
with accounts verified to Tier 2 or higher (for information on the account tiers click here). The minimum
dark order size is 50 Bitcoins and only limit orders are supported. The dark pool will accept orders
for trading between Bitcoins and EUR, USD, JPY or GBP. Dark pool pairings are designated by a “.d”
extension (e.g. XBT/EUR.d or XBT/USD.d).

So is this service to allow dodgy characters to sell illigally obatined bitcoins anonymously?
That would explain why there may be a better price offered.

If that is the case, is that something that a above board business wants to do?

[JerryCurlzzz]

So is this service to allow dodgy characters to sell illigally obatined bitcoins anonymously?
That would explain why there may be a better price offered.

If that is the case, is that something that a above board business wants to do?

There is nothing about this that is "not above board" IMO. Dark pools are commonplace. Institutions use them to scale in and out of positions (you may have heard the term "institutional order blocks" before).

[Digit-0]

Hidden orders do not come with an extra charge at bitfinex.

yes, but maybe they will change in teh future, i was thinking the same, even if the price is not crazy, but why would someone do it there wen in bitfinex is for free?

[XCASH]

Hidden orders do not come with an extra charge at bitfinex.

yes, but maybe they will change in teh future, i was thinking the same, even if the price is not crazy, but why would someone do it there wen in bitfinex is for free?

If you are a European citizen and your country uses the Euro then it's very cheap and fast to withdraw from the Kraken. Bitfinex charges much more for withdrawals and if a withdrawal involves converting Dollars to Euros there will be more charges. Europeans might save more on withdrawal fees than they pay in hidden order fees.

[chriswen]

Hidden orders on bitfinex also have extra fees.  They're takers as someone said.

Also the difference with a dark pool is that its not on the regular order book.  It's separate unlike the bitfinex orderbook.