By Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report We can almost hear that ominous "Jaws" theme music in the background and can see that huge dorsal fin as it slices threateningly through the water - knowing full well that the real terror is hidden beneath the water’s surface. But this time around, it’s not a "Great White" that’s sparking our fears; it’s a well-capitalized and broadly based series of secret stock exchanges known as "Dark Pools of Liquidity," "Dark Liquidity," or just "Dark Pools." Most investors have never even heard the term - and are truly shocked to discover these "off-the-books" trading networks actually exist. But to Wall Street insiders looking to anonymously move billions of dollars in stocks, bonds, and other investment instruments, dark pools are de rigueur - especially when you’re an institutional trader who doesn’t want ...

2 interesting articles this week from WSJ and Reuters on the untamed and unaccountable dark pools in the market.What are dark pools?The WSJ defines them as "the secretive electronic trading networks that match buyers and sellers anonymously." These trades are done outside of the traditional stock markets like the NYSE and NASDAQ.The WSJ journal points to the dark pools at failing on their promise of making it easy to move large shares without affecting price. In fact with more dark pool firms competing for volume and their share of the business, the consulting firm TowerGroup reports that the average trade was just 260 shares at the beginning of 2008. A decade ago it averaged over 1,400 shares. Ugly shrinkage.The Reuters article observes that as a result of the competition for liquidity and volume, many dark ...