Big U.S. stock exchanges ask SEC to hold off on fee cap plan

[Sig]

Those are actually just another consequence of regulation. The problem is that because regulation is the rule all over the world, these exchanges are the exception, which means there are relatively few of them, which means low competition between them. That has the same result: poor services at high prices. Worse yet, it gives the illusion that regulation actually is beneficial and people become willing to accept regulation despite knowing that they hold competition back, are bribed by the already established exchanges and "only catch the small fish" as the guy in one of the posts above admited while defending regulation.

A good analogy is drug criminalization(regulation). By criminalizing(regulating) drugs, governments push the business of drugs to drug traficants and people that are usually not "of the best kind". Not only that, it makes it a lot more profitable for them.

If you're interested, here is a good 5 min video related to the subject:

So first off, we can't have a reasonable conversation if you insist that criminalizing is identical to regulating. The vast majority of us who support the decriminalizing of drugs also support the resultant drug trade being highly regulated, just to use your example. And as a hint, when you have to go to those kind of contortions to support a position, it's generally time to reexamine that position.
It's also pretty absurd to say the hundreds of forex bucket shops are the exception and don't operate in a competitive landscape. First off, there are hundreds of them. Second, what exactly shields them from competing with one another?
Your original assertion was absurd, your support for it even more so. If you're losing money in the markets because of the fraction of a cent regulator fee you're either a HFT or a failed trader looking for someone to blame. Either way I wouldn't expect a lot of sympathy.

 

[NeoTrader]

So first off, we can't have a reasonable conversation if you insist that criminalizing is identical to regulating. The vast majority of us who support the decriminalizing of drugs also support the resultant drug trade being highly regulated, just to use your example. And as a hint, when you have to go to those kind of contortions to support a position, it's generally time to reexamine that position.
It's also pretty absurd to say the hundreds of forex bucket shops are the exception and don't operate in a competitive landscape. First off, there are hundreds of them. Second, what exactly shields them from competing with one another?
Your original assertion was absurd, your support for it even more so. If you're losing money in the markets because of the fraction of a cent regulator fee you're either a HFT or a failed trader looking for someone to blame. Either way I wouldn't expect a lot of sympathy.

You assume too much and consider just what you want to consider, ignoring what is not convenient to what you want to believe... You don't know anything about me and when someone changes the focus of the discussion from the topic to the opponent, THAT is a clear sign of lack of arguments and impossibility of having a reasonable conversation. Dream on...

 

[d08]

I really enjoy trading on all the unregulated forex exchanges. Without those parasites sucking up a fraction of a percent per share I make so much more money and feel so confident about the fairness of the exchanges and the safety of my funds. You?

I also love it when they run off with my money and I don't get a cent back. When that happens every few years, I just go "I lost everything but love the unregulated markets, freedom baby!".

 

[d08]

This is part of the reason as to why there are now fifteen option exchanges. The regulatory (ORF) fee more than covers the overhead. The SEC may eventually rule against maker/taker and then we'll see a new evolution of exchange models.

I would much like to see a market that's just a series of auctions at timed intervals. It would equalize the markets a lot and you wouldn't worry about slippage as long as you guesstimate the liquidity. This would make life so much easier as there is no real need to have a continuous price.

 

[Sig]

I would much like to see a market that's just a series of auctions at timed intervals. It would equalize the markets a lot and you wouldn't worry about slippage as long as you guesstimate the liquidity. This would make life so much easier as there is no real need to have a continuous price.

My first company was an "unregulated marketplace", essentially an exchange for electricity environmental attributes. We found that the timed auction method of ensuring liquidity is far superior to a market maker method after trying both. Granted this was a very illiquid product, but I couldn't agree with you more for the majority of financial products out there. Might actually be something worth pursuing. I know a few exchanges do it here and there, but why not a 15th options exchange that just operates on period X auctions where X is one of several choices based on liquidity of that particular product?

 

[d08]

Those are actually just another consequence of regulation. The problem is that because regulation is the rule all over the world, these exchanges are the exception, which means there are relatively few of them, which means low competition between them. That has the same result: poor services at high prices. Worse yet, it gives the illusion that regulation actually is beneficial and people become willing to accept regulation despite knowing that they hold competition back, are bribed by the already established exchanges and "only catch the small fish" as the guy in one of the posts above admited while defending regulation.

A good analogy is drug criminalization(regulation). By criminalizing(regulating) drugs, governments push the business of drugs to drug traficants and people that are usually not "of the best kind". Not only that, it makes it a lot more profitable for them.

If you're interested, here is a good 5 min video related to the subject:

I get it that Friedman is your hero or you just discovered him and are enthused about it.
But let me get this straight, you want no regulation which means an exchange can do anything it wants with your order and you have no way to find out about it? And you expect hundreds of exchanges to pop up as if the infrastructure expense is very low. We're not talking about a bicycle delivery service here...

That said, I understand your frustration, just now I saw the ridiculousness of the regulated markets - the price traded through my limit, no match. How is this supposed to be normal in a regulated market? I lost a fill, the other side got a worse price. Pure corruption. The continuous market is a joke.

 

[ajacobson]

Friedman isn't a him. She's a brilliant lady.

Just for the record.

 

[NeoTrader]

Fuck

I get it that Friedman is your hero or you just discovered him and are enthused about it.
But let me get this straight, you want no regulation which means an exchange can do anything it wants with your order and you have no way to find out about it? And you expect hundreds of exchanges to pop up as if the infrastructure expense is very low. We're not talking about a bicycle delivery service here...

That said, I understand your frustration, just now I saw the ridiculousness of the regulated markets - the price traded through my limit, no match. How is this supposed to be normal in a regulated market? I lost a fill, the other side got a worse price. Pure corruption. The continuous market is a joke.

Fuck Friedman... I didn't know him... And I couldn't care less what type of person he was... That's the thing with people like you and in general... You shouldn't judge something by who said or wrote it, though this could be an initial factor in avalueting some subject... What matters is just logic, your own judgement about anything after giving it enough thought and consideration... And his ideas, Hayek's, Sowell's and so on are pure logic... You don't have to "believe" anything... Just think, use your head and eventually you'll see the logic in it(or not). You should read some of his books... I recommend "Free To Choose", if you must pick just one... People like him never "invented" any theories, they just observed reality and described it as it is. You are still one of the many that judge policies and institutions by their intentions and not their actual results.
As for your order, fuck your bad fill. It's no use to be complaining about things. Things are what they are, fucked up or not, deal with it anyway. Could it be better if there were no stupid regulations? Sure. But I can't do anything about the blind that doesn't want to see and supports this kind of shit, making it an unfortunate reality. We're all here just killing time...

 

[d08]

Fuck

Fuck Friedman... I didn't know him... And I couldn't care less what type of person he was... That's the thing with people like you and in general... You shouldn't judge something by who said or wrote it, though this could be an initial factor in avalueting some subject... What matters is just logic, your own judgement about anything after giving it enough thought and consideration... And his ideas, Hayek's, Sowell's and so on are pure logic... You don't have to "believe" anything... Just think, use your head and eventually you'll see the logic in it(or not). You should read some of his books... I recommend "Free To Choose", if you must pick just one... People like him never "invented" any theories, they just observed reality and described it as it is. You are still one of the many that judge policies and institutions by their intentions and not their actual results.
As for your order, fuck your bad fill. It's no use to be complaining about things. Things are what they are, fucked up or not, deal with it anyway. Could it be better if there were no stupid regulations? Sure. But I can't do anything about the blind that doesn't want to see and supports this kind of shit, making it an unfortunate reality. We're all here just killing time...

What's the point of your post? You post Friedman's videos and images one after another, what is one supposed to think?
There's no "pure logic" in eliminating all regulation. You simply refer to "pure logic" when it suits your views.
So now you've moved on to "stupid regulations", does that imply you want to keep some regulations and not just remove it all?
You suggesting I'm blind, it's funny because that's how I see you. You're the "grass is greener on the other side" type of person, you don't address any of the major problems lack of regulation creates, simply focus on the positives.

 

[NeoTrader]

What's the point of your post? You post Friedman's videos and images one after another, what is one supposed to think?
There's no "pure logic" in eliminating all regulation. You simply refer to "pure logic" when it suits your views.
So now you've moved on to "stupid regulations", does that imply you want to keep some regulations and not just remove it all?
You suggesting I'm blind, it's funny because that's how I see you. You're the "grass is greener on the other side" type of person, you don't address any of the major problems lack of regulation creates, simply focus on the positives.

The point is what I said: Kill time... As I said, I'm well pass the point of thinking that I can or should convince someone to see things logically... I don't give a fuck... There are no problems caused by lack of regulations. Regulations just do harm. Nothing more.
If you want to see what I mean, I already recommended you the book. Your choice... Makes no difference to me. Have a great weekend!