Final answer:
The market being referred to is the NASDAQ, which is an electronic stock market where large blocks of stock trade in transactions unassisted by BDs.
Step-by-step explanation:
The subject of this question is Business. The market being referred to is the NASDAQ, which is an electronic stock market where large blocks of listed and unlisted stock trade in transactions unassisted by Broker-Dealers (BDs). The NASDAQ was founded in 1971 as an electronic stock market that allows people to buy or sell stocks from many physical locations. The market you are referring to is known as an "Alternative Trading System" (ATS) or "Dark Pool." In these markets, institutional investors can trade large blocks of stock, both listed and unlisted, directly with each other, without the assistance of traditional Broker-Dealers (BDs). Dark pools allow for more discreet trading, as the transactions are not displayed on public order books. This level of privacy can be attractive to institutional investors looking to execute large trades without causing significant price movements in the broader market.
Dark pools operate differently from traditional stock exchanges, where trades are often executed on a centralized platform with visible order books. Instead, dark pools provide a more private venue for institutional investors to match buy and sell orders. The term "dark" refers to the lack of transparency in terms of order information.
It's important to note that the use of dark pools has been a subject of regulatory scrutiny, as there are concerns about the potential impact on market transparency and fairness. However, they continue to play a significant role in the trading activities of institutional investors.