openbondx-maker-taker-rebate

e-Bond ATS “OpenBondX” Promotes Maker-Taker Rebates

Start-up corporate bond trading system OpenBondX is hoping to pull a rabbit out of its hat and jump start activity by emulating what the universe of equities-centric electronic exchanges and ATS platforms do in order to attract order flow to their respective venues: pay broker-dealers for orders given to them…Read More

21 April, 2016

BrokerDealer Exchange Rebates: BuySide Not Happy

On the heels of the recent NYSE ‘outage’, which actually had little impact on overall equities trading volume, but did lead to volume spikes away from the NYSE and at competing exchanges across the fragmented marketplace, the volume also increased with regard to spirited discussions about market structure. And, whenever…Read More

17 July, 2015
rebate

Add One More Options Exchange To Your Menu-Its About…

MarketsMuse options market update courtesy of extract from our friends at MarketsMedia LLC and their profile of yet another proposed options exchange with yet another “rebate” scheme intended to capture market share in the very competitive world of order routing. International Securities Exchange will have its ISE Mercury exchange ready…Read More

5 March, 2015
payment-for-order-flow-rebates

Yale University Wonks Blast Exchanges’ Payment-For-Order-Flow Schemes

In a July 18 NYT op-ed piece "Wall Street Profits by Putting Investors in the Slow Lane" submitted by Jonathan Macey, a professor at Yale Law School and David Swensen, the chief investment officer of Yale University, the spirit debate topic of payment-for-order-flow schemes, aka rebates paid by the various stock exchanges to…Read More

18 July, 2017
rebate-schemes-market-structure-marketsmuse

Pay-to-Play Rebate Schemes Confuse Smartest Traders

Within the context of market structure, the ever-evolving rules of the road for those attempting to navigate how and where to secure best pricing when executing equities orders has become so convoluted thanks to pay-to-play rebate schemes, its not only the curators at MarketsMuse who are scratching their heads, even…Read More

2 March, 2016
NSX exchange

Big Dick Behind Yet Another New Exchange; NSX v…

Former Lehman Bros capo Richard Fuld likes acronyms, and somewhat out of character for the Big Dick many on Wall Street remember him to be,  he also apparently likes the idea of inserting himself into a consortium that has created yet another new exchange platform--that eschews the notion of maker-taker…Read More

10 November, 2015

Rule 48, ETF Dislocation: BATS CEO Says “No Humans…

When ETFs were first launched in 1993, the 'framers' might not have fully appreciated what would happen to the respective ETF cash index in the event of a lopsided market opening when the underlying constituents had not yet opened for trading, despite the easy recall of October 1987.. Since that…Read More

7 September, 2015
agency only executing broker

Agency-Only Executing Broker: What Does Best Ex Mean?

MarketsMuse dip and dash department frequently prefers spotlighting altruists and do-gooders, including Agency-only execution firms in the brokerdealer sphere who, unlike “principal trading desks”, do not take the contra side to institutional customer orders as a means of making a profit; agency-only firms merely execute those client orders via the…Read More

28 July, 2015

NYSE Snafu Causes Market Structure Experts to Flip-Flop

MarketsMuse senior editors have quickly canvassed a broad assortment of "market structure experts" and industry talking heads who have been at the forefront of debating the pros and cons of market electronification, multiple market centers and the underlying issue: "Is Market Fragmentation Good, Bad or Ugly?" For those who might…Read More

8 July, 2015
options best execution

Best Execution Algos for Options Trading: Dash Dares To…

MarketsMuse.com Strike Price section profiles trading systems vendor Dash Financial algorithm-based approach to securing options market “best execution” in the ever-increasing world of options mart fragmentation and the wacky rebate schemes that have proliferated across the electronic options exchange landscape. Below is courtesy of extracted elements from MarketsMedia.com April 20…Read More

21 April, 2015

Finra Steps Up Investigation Of Broker-Dealer Order Routing Rebate…

NYSE CEO Says "Not Good" while appearing before Senate on the topic of equities market structure and Maker-Taker Rebate Schemes. Bowing to increasing pressure from regulators, law makers and law enforcement officials, Finra, the securities industry "watchdog" has launched its own probe into how retail brokers route customer orders to…Read More

9 July, 2014

Wall St Execs Do The Flip-Flop While Being Grilled…

Conflict of Interest is Of Interest to Senate Panel Members "just learning about" industry-rampant Payment For Order Flow Schemes . Market Structure To Be Re-Structured? Excerpts below courtesy of The Wall Street Letter's on the spot coverage of the U.S. Senate investigation of Wall Street's affection for high-frequency trading aka…Read More

17 June, 2014

HFT Chapter 3: U.S. Senate To Hear About Payment-For-Order-Flow,…

MarketsMuse Editor Note: Finally, the topic of payment for order flow, the questionable practice in which large brokerage firms literally sell their customers' orders to "preferenced liquidity providers", who in turn execute those orders by trading against those customers orders ( using arbitrage strategies that effectively guarantee a trading profit…Read More

17 June, 2014

Regulators Take Aim at Maker-Taker Fees; High-Frequency Trading v.…

Excerpt courtesy of April 15 edition of WSJ and reporters Scott Patterson and Andrew Ackerman. A fee system that is a major source of revenue for exchanges and some high-frequency trading firms is coming under the heightened scrutiny of regulators concerned that market prices are being distorted, according to top…Read More

15 April, 2014

Industry Titan Takes Exception to Maker-Taker

(Bloomberg) -- Regulators could stem the migration of U.S. equity trading to dark pools by coordinating a cut in trading fees, an action exchanges are unlikely to take on their own, according to one of the biggest high-frequency firms. Most exchanges are charging traders too much -- 30 cents per…Read More

2 January, 2014

Managing Conflict Re: Broker-Provided Trading Systems

Courtesy of AdvancedTrading Contributor Phillipe Buhannic Editor Note: This article is endorsed by MarketsMuse sponsor OMEX Systems, Inc. Buy-side clients need to understand that when they trade on a broker-sponsored platform, they are paying for these systems, whether that payment comes in the form of commissions, licenses, or widened spread.…Read More

17 July, 2013

Profiling Broker Excellence: A Rare Commodity

Excerpts courtesy of June 26 NYT column by Nathaniel Popper MarketsMuse Editor's Note:  Though we generally spotlight the most relevant leading news media articles profiling the trading of ETFs and Options, on a selective basis, our editorial team also makes mention of compelling profiles of investment managers, traders and institutional…Read More

26 June, 2013

Follow-On: Major Exchange Slug Fest in Battle for ETFs

Courtesy of Tom Steinert-Threlkeld Nasdaq, NYSE and BATS are slugging it out with incentives, new order types and a new exchange to resuscitate trading in ETFs... Once it worked. Now, not so much. For years, the Nasdaq Stock Market designated a single market maker for each exchange-traded product. Later, the…Read More

1 May, 2013