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…)

  A  newly revised academic paper about NYSE parity caught our attention.  The paper is titled “Deviations from Time Priority on the NYSE” and was written by Professors Robert Battalio and Bill McDonald from the University of Notre Dame and Professor Robert Jennings from Indiana University.  You might remember Professors Battalio and Jennings from their 2013 paper “Can Brokers Have It All?” which suggested that retail brokers were routing to the venue that paid them the highest rebates and not necessarily the venue with best execution.  Their new paper is the first of its kind to empirically address NYSE’s parity rule and to actually quantify the cost of parity (more…)


Nov, 2018


Sep, 2018


Sep, 2018