After two years, the tick size pilot will end after the close of trading today. While the goal of the tick pilot (increased small cap liquidity) was noble, the preliminary results appear to show that the goals were not accomplished.  However, before the industry declares the pilot a waste of time and money (some have estimated it cost hundreds of millions of dollars), it’s important to realize that the pilot has yielded two years of data which can now be analyzed by researchers.  We hope that the analysis not only shows what worked and what didn’t work but also gives reasons for certain failures.  (more…)

  This morning we were going to share a first-account-trading-war-story that perfectly captures the absurdity created in our markets from payment for order flow, and specifically stock exchange rebates. However, a jaw-dropping speech from one of our new SEC Commissioners, Robert Jackson, presented itself as a perfect stage-setting opportunity. This morning we highlight that speech instead, and next week we will share our war story. The winds of change are most certainly around the bend. Summer ends today, and in the not-so-distant-future the gales of October will turn into the chilly winds of November. After those chilly November winds – (more…)


Sep, 2018