Yesterday we wrote about the SEC’s decision to approve the Chicago Stock Exchange’s new speed bump known as the “LEAD”.  We questioned why the SEC would tilt the playing field and give market makers yet another advantage. Today we would like to bring up a couple of more points about the approval: 1) Market Data Revenue – The LEAD speed bump is another market maker subsidy which is on par with enhanced rebates that market makers currently receive.  Why would the CHX want to further subsidize their market makers with this speed advantage? One reason could be that the CHX would like to earn more (more…)

  On Friday the SEC approved the Chicago Stock Exchange proposed speedbump as a 2 year pilot program, where CHX would be required to collect and report various statistics. It had received twenty comment letters on the CHX’s proposal, including several from market structure thought leader, R.T. Leuchtkafer. We’ll get to RTL in a few moments… As a quick refresher, CHX initially proposed a Liquidity Taking Access Delay (LTAD), which was withdrawn, and replaced with a proposal for a Liquidity Enhancing Access Delay (LEAD): LTAD proposed subjecting incoming takers to a 350ms software delay, effectively discriminating via speedbump against takers (more…)


Aug, 2017