July 14, 2008

On averages and dark pools

Sir Rupert Macey-Dare´s suggestion to “Upgrade models to blend in pricing information” July 14, which is sort of looking at the difference between how the market prices risk and how the credit rating agencies see is intuitively attractive. That said we have to remember that an exact average does not signify a perfect average and also the fact that if the dark pools where trading occurs in a hidden way and that have been lately so much mentioned really take off then our market price data might not reflect the real market price.

By the way will there be some ownership of the data in the dark pools that will allow for their commercialization at a price? A new line of business? Dark pools of student grades which parent have to pay for to see?