Quote from: cschmitz on June 04, 2011, 09:24:02 PM

Where have i implied that Tux actually a) intends to do so b) has done so c) has any malicious intent? You assume that i have said or implied that, which is simply false. I am simply pointing out that, given the size of btc economy and the predominant role of mtgox, darkpool sizing could be employed as a tool of monetary policy since it has a rather strong impact on the global btc<->fiat exchange rate, either directly on mtgox or, via arbitrage, on other trading places.
Before ad hominem attacking me, maybe you should invest time to play along with my train of thought that is in no way judging on tux.
Given the infancy and size of the economy it surely cant hurt kicking ideas around on how things actually affect the btc-verse.

Okay, let me back up here.

From your original post about darkpools, you seem to indicate that the withheld size is creating a two-tier market which Mt. Gox allows, and then the big 'players' use this to capture an arbitrage play off of their bid/offer compared to the open book.

So, the main question is - where did you get the idea that there is a two-tier bid/offer system, and two, why would you think Mt. Gox would allow that? (Please correct me if you didn't mean to imply this.)

Dark pools do exactly what they say - they cross trades on the public bid/offer without disclosing their size. I think you may be confusing the depth of the market (how it can absorb orders, which darkpools help do) with how the public bid/offer works.

Here's the details directly from Mt. Gox:

"There are 2 types of dark pool orders.
Dark pool and Normal - Can be filled either partially from the normal orders or the dark pool.
Dark pool Only - Can be filled only by other dark pool orders or a single normal order that is larger than the dark pool order. This means that if there is a single normal order that would fill the dark pool order both will be filled."

That indicates to me that not only are dark pools helping stability, it enables volumes to grow. Dark pool orders only cross on the public book if there is an order large enough to absorb it. That isn't manipulation. Its basic market-making. Dark pool orders are crossed with each other at size where their bid/offer match. The quote is then disseminated to the world without disclosing the size.

Seems straightforward to me.