Here Are The Most Actively Traded Names In Goldman's Dark Pool (Or Why Is The Big Money Fascinated With Italy?)

Tyler Durden's picture

Courtesy of recent disclosures, the common man (as in anyone who does not pay millions in kickbacks, er, soft dollar fees to GS) can now observe what is being traded on Goldman's Dark Pool, better known as Sigma X. Why is this important? Because as Themis Trading presented last week, only 30% of all trading occurs on open exchange venues, meaning the bulk of actual shares change ownership behind the scenes, in places such as Sigma X, Chi X, and the dark pools of Credit Suisse, Citi, and various other banks, not to mention numerous other secondary ATS, where very little if any of the daily trading detail is released for general observation. This means that while HFT algos drive up the volume of numerous top 10 stocks merely for the sake of collecting rebates, the real action is in the most actively traded dark pool names, where the big boys are actively trading risk, where HFTs are non-existent, and the companies that represent the top 5 is what investors, speculators, and vacuum tubes should be focusing on. Not surprisingly, today's most active names are Banca Monte dei Paschi di Siena, Unicredit and Intesa Sanpaolo. Translation: someone is actively positioning for serious action in Italy shortly.


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Cassandra Syndrome's picture

Greaseball Meltdown Bitchez

66Sexy's picture

we've been shown the table, but the options are still: red or black.


slaughterer's picture

If Sigma X has three Italian banks in its sights, then the next logical question is: when will Reuters drop the bad news about these banks?

rsi1's picture

300-400k shares? who cares about that? wethere it is in Sigma X or Squid X, it is nothing, Unicredit moves +300m shares /day on the milan exchange! That is pocket change as an amount and relative volume, so irrelevant.

ZeroPower's picture

Absolutely right. And lets not forget, DPs are (mainly) for institutional investors to have access to other big buyers/sellers that want to off-load a large block of shares in a single go instead of going on the market and getting it split up (and potentially moving the price if the stock is thin) in those fucking 100-share HFT increments.

So if anything, its quite ironic touting the whole 'BAN HFT!; BAN DARK POOLS!' mantra as they dont necessarily align with each other. I hope this is clear..

DoChenRollingBearing's picture

The Bearing is interested in Europe, but I do not see whether this post is bullish or bearish on Italy.

I have heard that Italy is indeed weak.  We have friends there...  And they talk pessimistically.

I would really like your comments...

Arius's picture

i think anything can be spinned as bullish ... right ?

as for Italy, weak or strong .... if i am correct Italy is the second "I" as for PIIGS .... just follow the script ... very simple, give it time and everything will play out accordingly...


Ivanof's picture

Banca MPS is under a capital increase ... and there are rumors that MPS is going to be "merged" with other bigger banks (with premium....)

I live here in Italy and I don't think we are the second "i" of the PIGS... as our debt is under control (low deficit compared to ALL the others... except Germany) but mostly we still have huge personal saving and a duration of our debt of 7.1 YEARS compared with 4.4 of the USA.


TwelfthVulture's picture

PIIGS: Portugal, Ireland, Italy, Greece, Spain.  Italy is either the 1st or the 2nd "I".

NotApplicable's picture

I'd guess that "huge personal savings" is what will make destroying Italy even more profitable for the banksters, than say, just burdening the population with sovereign debt. It may mean a little less austerity, but you'll have higher taxes instead.

So, either your wealth or your future labor will be targeted for repayment. There will be no escape.

slaughterer's picture

Otherwise put: Anybody thinking Spain is next on the hit list just failed the Sigma X test.

Franken_Stein's picture


Thanks Tyler and team !

You rock da house !

You da man !


Going Loco's picture

Royal Bank of Scotland down 3.66%

Xavier Doe's picture

"Translation: someone is actively positioning for serious action in Italy shortly."

Er, "up" action or "down" action?

Boston's picture

Translation: someone is actively positioning for serious action in Italy shortly.

And judging by the Italian 10-year, which is about to hit a three year high, the "action" is not going to be pretty.


slaughterer's picture

But then again, the Squid does use Sigma X  sometimes as a high-power head-fake instrument when it is desperate.

Thisson's picture

This seems relatively simple: Italy is a visible domino that is least "priced in" to the market so far (in contrast to, say, Greece)

GeneMarchbanks's picture

The Squid are puttin' the squeeze on 'em!

How many tons their CB hold again?

boiltherich's picture

I suppose your question is rhetorical, but for those that would like to know Italy is the nation with the third largest holdings after the US and Germany, 2,452 tonnes, as of 12/10 according to IMF data.

MolotovCockhead's picture

Good, love to see some fireworks light up!

slewie the pi-rat's picture

well, m00m00moody's went w/ the threatened downgrade (Paste):  

In a report published late Thursday, Moody's Investors Service placed the long-term debt and deposit ratings of 16 Italian banks and two Italian government-related financial institutions on review for possible downgrade.

The rating agency also changed the outlook to negative from stable on the long-term debt and deposit ratings of a further 13 Italian banks,

The move comes after Moody's put Italy's public debt on review for possible downgrade over concerns about low growth and high public debt, which at around 120 percent of GDP is one of the biggest in Europe.    Read more:

and then cramer...

slewie the pi-rat's picture

...freaking cramer (6.24.11):  Cramer had a message for investors who own Italian banks or companies that have insurance in those banks: "Will you stop being so braindead and sell already?" 

i'll spare you the link...

i don't know if italy has any gold gold left.   just look what they've sold on QVC.

Caravaggio's picture

Sure, it is widely known the italians are stupid peolpe and will stay and watch zukermans riding white hoarses.
BTW, is California the firts C in SHIT?

narapoiddyslexia's picture

I apologize in advance, but would someone please interpret this for me? Thank you.

Mercury's picture

Is there a multiplier on that volume column or are we talking about ~$1mm worth of stock here (total) in those top three names?

optionsoptions's picture

if you are asking is this pointless because its really not a lot of money either way then the answer is yes...its pointless

campag's picture

no HFT in Sigma x ? - who told you that Goldman ?

They surely run there own

Bansters-in-my- feces's picture

Off topic a bit but WTF.??.... Dow surging and silver getting bitch slapped.

Fuck Off Exchange Stabilization Fund Crew,and JPM Fucking scum dogs....

Fuck Off and Die...!!!

alexwest's picture

the real action is in the most actively traded dark pool names, where the big boys are actively trading risk, where HFTs are non-existent,

what makes you think that ??? i'd say is quite opposite
all those platforms are totally private / operated by banks, so i dont think thre's even simple disclosure regulation who trades what/etc


Greeny's picture

I dunno what crisis but DOW just blowing up without any signs

of pool back.. Go baby, go.. For some reason only

PM's are lagging.. Poor silver below $34 still.

Arius's picture

hate it to be right .... but it seems like a fake for suckers ...

JW n FL's picture

Libya produces 900,000bbl of oil.. of which 800,000bbl goes too Italy.. this does not include the natural gas.


With Libya in Play so are all the markets in Italy, consider it a small(ish) testing ground for things to come Globally.


Within the woes of Italy one could find the keys to successful trading going forward.. call Italy a ruff outline for future energy crisis trading.


They are lucky to have Italy to practice on!

DoChenRollingBearing's picture


+ 100

Food for thought JW.  Will keep an eye open on Italy as a testing ground re energy.

I liked your comments on energy on another thread earlier as well.

decon's picture

Does this mean that common posts ZH makes about no volume market rising on vapors only reflect the public volumes?  Do we need to take the public volumes x 2.33 to get the real volume?  If that's the case, does it explain big up moves on little "public volume"?

JW n FL's picture

there are a LOT! of ways to check dark(s) pool volume(s)!


it would interesting for someone to track the volume of East to West traffic since that Pool was opened..

JW n FL's picture

for those that are to fucking dim witted to get it.. repatriotization of funds is just a dog and pony show for the sheep to entertain themselves with.

JimRogers's picture

Great reporting TD.


Thanks for this new indicator.


A Man without Qualities's picture

Closed trading network using information that is not available to the wider market.  The banks know there is good reason to worry about Italy, but they don't want to scare the children.

buzzsaw99's picture

I find the price action in GS interesting. Can the financials rally without the squid?

KidDynamite's picture

good indication that there's something wrong with your data screen: every single stock that came up is European

web bot's picture

That's funny... in a non-funny way of course.

Iam Rich's picture

Interesting that the Italian bank smackdown a few days back didn't generate any ES reaction.  Everyones looking at Greece as the black swan.  A black swan would be an Italian bank blowing up (or a French, British, or "god forbid" a German bank).

camoes's picture

Mamma mia! Porca bastardo! They gonna short us Mario!

Scipionz's picture

Greece is "fixed", let's get Italy..." (sigh)

Use of Weapons's picture

From BoI > ECB. He knows where the bodies are buried, and Burlesqoni has already been tipped to be axed [Economist, 9th June, front page hit piece, focusing largely on financial fraud]. Nothing like a bit of inside information to grease (puntastic!) the wheels of the next incumbent - although Berlusconi is going to be hard to top, in terms of bunga bunga. I'm getting the feeling that lassitude over old style 'continental' male sexuality is forcing it into being seen as a 20th C historical embarrassment, but I digress.


That, or Draghi left a note akin to this:


Your choice, watch his (bearish) exit speech. Plus, Italy is looking like Greece II, in terms of output / employment / youth talent flight.


[Note: primary media source deliberately chosen for lack of copy/insight, and massive GS puff piece underneath - you go tiger, buying Cantor's ex mansion! Read what you will into it... Let's just say that Draghi's job at GS was 'purely advisory' and not at all a frontrunner for the GS Europe 2010-2015 playbook. Nothing like GS -> BoI > ECB for a transparent 'to the moon' career trajectory.]