Man, slow days in the market are dangerous for idle and bizarre minds (mine). The more I dig, the more questions I come up with. Today I am questioning the whole rebate trading game (payment for order flow by for-profit entities and exchanges). Some of these exchanges actually have accelerated rebate programs. Instead of paying their subscribers their monthly rebate in a lump sum at the end of each month, these exchanges actually pitch to the marketplace as an advantage, that they will pay the rebates WEEKLY instead, which will help brokers meet their net capital requirements with the regulators. (more…)

And so it begins.  The HFT crowd has launched their defense.  As we all know, the HFT crowd is a secretive bunch so their defense is being launched though various surrogates who have their own self interest at hand.  First, there are the brokers.  We have seen many of these “client” letters from brokers over the past week and they all seem to have the same theme:  The HFT attack was launched by self interested market participants and it is filled with erroneous statements and misinformation.  They all also now seem to be against “flash orders”. We wonder where these (more…)

21

Jul, 2009

21

Jul, 2009