Which of the following best describes a dark pool?

A dark pool best describes a private trading venue that facilitates confidential trades. These venues are designed to allow institutional investors to buy and sell large orders without revealing their intentions to the public market, which can help minimize market impact and prevent price movements that could occur if such large trades were visible. Dark pools operate outside the public exchanges, and details of individual trades remain undisclosed until after the transactions are completed. This confidentiality can provide advantages in terms of price execution and reduced slippage for large orders.

The other options describe concepts that do not accurately reflect the nature of dark pools. For instance, a regulated stock exchange with full public disclosure emphasizes transparency and market accessibility, which contrasts with the private and opaque nature of dark pools. An online platform for retail investors suggests a focus on the individual investor, while dark pools primarily cater to institutional traders. Meanwhile, a system for tracking public stock prices indicates a mechanism for transparency and information dissemination, which again is contrary to the secretive characteristics of dark pools. Therefore, the description of dark pools as private trading venues distinctly highlights their purpose and operational framework.