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No, your order should be sent to a competitve market, which internalization is not. You'll never know what the competitve price would have been, if you're operating in an environment of internalization. It changes the dynamics and incentives of the order book. Many exchanges provide price...

So that optionality is the cost of providing liquidity -- and the benefit is the spread. I doubt a 1s minimum would widen spreads much -- and to the extent that it would, who cares about a spread that was narrower for 1/100 of a second? No human end user of the system can react that quickly...

They self-clear. But both Interactive Brokers and Penson (or whatever its remnants are called now) are owned by and controlled by HFT market makers/proprietary traders. This creates very significant potential for conficts of interest. It's not a trend I like -- it could have very negative...

You must be making a killing with all that market inefficiency, coupled with the fact that spreads, commissions, and exchange fees are at all-time lows. Please let the rest of us know how you're doing it.

Ahah I see your point -- I didn't express that too well -- what I really meant is to support the idea (which I first saw at Nanex) that orders that wish to post to BBO must be of a type that is guaranteed to exist for some period of time. The BBO itself would update "instantaneously". I'd say...

Your old firm filled a gap that was created by the old guard's resistance (old NYSE specialists, etc.) and the new efficiency created by electronic markets. The old guard was so resistant that it took Congress and the SEC to help break things open. Now that the efficiency of electronic...

That seems an overly general and unfair accusation. Most liquidity is provided by "high frequency trading" of one sort or another. Yet that's not to say that reforms wouldn't be a good thing (e.g., banning internalization/PFOF, and requiring orders to be live for at least 1 second if they want...

These are good observations. The code is out there; if accusations are correct, then the code is even making its way out of the top shops into startups (through theft by exiting employees). But even without code theft, we still have a world where 1) computers are getting faster; and 2)...

I'd say that there's some impact, probabilistically, from the very first order you submit. I'd also say that the exact function of this slippage is as hard to know as anything else with respect to market microstructure, so you're probably not going to get anything more than a rough guess, no...

Getco cuts staff with trading volumes thin [Financial Times] http://www.ft.com/intl/cms/s/0/b6bf723e-b5a9-11e1-ab92-00144feabdc0.html The HFT world does seem to be shrinking, with staff cuts, firms putting themselves up for sale, etc. It's not just declining volumes -- it's also shrinking...

Of course, tick data are analyzed ad nauseum by hedge funds and the like. The data are widely available (at a price). Computers have probably arbed out all the easy stuff, so I can't imagine your odds are very good, given where you're at now. But everyone needs to start somewhere. I...

I think the ulitmate solution is to ban internalization and payment-for-order-flow enitrely. Internalization and fragmentation are costing everyone, and it's a really opaque cost to the typical retail trader. For brokers to call this "price improvement" is laughable. They are often...

But it's not really good for the market -- internalization trashes the market for the benefit of brokers. Ultimately there is a cost (easily in billions per year) to everyone else.

I certainly wouldn't call it a happy ending, as Knight is primarily a trading firm, and one that relies on sneaky tactics (e.g. payment-for-order-flow deals for retail orders) to make much of its income. So if you're a short-term trader, Knight has the potential to be your competitor (and...

NSDQ, ARCA, EDGE, and BATS are all full-fledged exchanges now, as are their smaller units such as BX, PHLX, EDGX, and BATY. Have you been away from the market for a while? Google the exchange names and terms like "market share" and you can read about the status of equity exchanges these days...

It is crazy. Present tax law strongly discriminates against US citizens. The US should tax everyone equally (foreign or domestic) and tax only those gains that occur in the US, or else eliminate the capital gains tax entirely and switch to a more sensible tax regime (carbon tax? graduated...

Are you sure? Various Web sites seem to agree with Yahoo, based on the March 31, 2012 peak6 13F-HR: http://rocketfinancial.com/OwnHist.aspx?sID=3581&fID=4081 http://rocketfinancial.com/FetchDoc.aspx?fid=3811442

You might consider using FIX, as it's "broker-neutral". If you get tied to a particular platform, you may regret it later (as did I); even worse can be a broker-specific platform, which you have to toss out if your broker ends up being a problem. That said, broker/platform-specific...

http://finance.yahoo.com/news/facebook-market-makers-losses-total-024559525.html Curiously, the 4 firms mentioned in this article represent 4 of the 5 firms that compose the payment-for-order-flow oligopoly. I'm not sure it's right to call them "market makers" (even if they've got the...

For what it's worth, I've used a lot of brokers and have never seen charges like this -- ask your broker what they are.