What percentage of trading volume is required for a single venue to remain exempt under the double volume cap?

Understand the Problem

The question is asking about regulatory requirements related to trading volume and the double volume cap, specifically what percentage is necessary for a single trading venue to remain exempt.

More Information

For a single trading venue, the proportion of dark trading must not exceed 4% of the total trading volume in order for that venue to remain exempt under the double volume cap mechanism.

Tips

A common mistake is confusing the single venue cap percentage with the combined venues cap percentage, which is 8%.

Sources

• Trading heads call for reform of double volume caps - Risk.net - risk.net
• Banning dark pools: Venue selection and investor trading costs - sciencedirect.com