IEX published a report this week titled “The Cost of Exchange Services” which is a first-of-its-kind, inside look at how exchanges provide and price market data. Not only does IEX provide a detailed breakdown of market data feeds and physical connectivity costs but they detail the process of how an exchange delivers data.  The numbers are simply astounding.  We urge you to read the entire IEX paper to really understand what the market data fee debate is all about.   After reading the paper, we thought that a good way to understand market data was similar to the seating on an airplane. There is First Class which (more…)

  A few days back we pointed out to you that FINRA has listed their 2019 Exam Priorities, in which it would look closely at Best Execution, and specifically firms who route substantial amounts of order flow to wholesalers or their own ATSs. FINRA’s focus certainly seemed to arise out of order routing practices at retail firms like Robinhood, which had been selling north of 60% of all its order flow to Citadel. Robinhood has recently cut back that percentage some, no doubt due to the eye-opening scrutiny it has recently received from the industry in general, and regulators.   (more…)

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