DOJ and SEC looking into ecxhange fees

[ajacobson]

SEC, DoJ to jointly investigate exchange data fees | PAYWALL for more


June 23, 2020
CONNECT WITH SMARTBRIEF    

News and trends shaping the future of finance SIGN UP ⋅ SHARE
ADVERTISEMENT

SEC, DoJ to jointly investigate exchange data fees
The Wall Street Journal (tiered subscription model)

 

[stochastix]

I thought the exchanges just won a recent challenge

 

[qlai]

They will simply break up SIPs. Competition will drive prices down.

 

[stochastix]

When are they gonna implement NMS v2?

 

[qlai]

When it’s going to be useless for retail traders. They are just trying to bring costs down for sale-side firms. You and I will never have access to good real time data (SIP or proprietary), especially now that PFOF is accepted. US Equity markets are becoming CFDs run by HFTs. That was the idea in the first place. Do you think HFTs are against high cost of propriety feeds? Non-display rule is the best thing that happened for them.

 

[stochastix]

When it’s going to be useless for retail traders. They are just trying to bring costs down for sale-side firms. You and I will never have access to good real time data (SIP or proprietary), especially now that PFOF is accepted. US Equity markets are becoming CFDs run by HFTs. That was the idea in the first place. Do you think HFTs are against high cost of propriety feeds? Non-display rule is the best thing that happened for them.

Why do you say that? Anyone can buy access but yeah.. maybe someone should just bomb them to level the playing field

 

[stochastix]

https://www.google.com/amp/www.cour...nges-win-fight-against-sec-over-trading-fees/

Just host a box at nasdaq.. check the atomic clock.. the quotes aren't lagged

 

[qlai]

Just host a box at nasdaq.. check the atomic clock.. the quotes aren't lagged

TotalView timestamp vs atomic clock?

 

[stochastix]

TotalView timestamp vs atomic clock?

Yes, Lime brokerage is super fast..but you can join a prop firm or become your own broker dealer if you have enough time and money. if you put a box next to the matching engine you will get quotes just as fast as anyone else although IEX is the only one I know.of that goes out of their way to make sure data arrives at external POPS at the same time. The reason I got picked off is due to latency arbitrage and sniping hft algos.. not any sort of slow quote feed. The pickoffs stopped when I started using iex peg orders instead of trying to peg the orders on nasdaq myself

 

[qlai]

The reason I got picked off is due to latency arbitrage and sniping hft algos.. not any sort of slow quote feed.

So how do you think they are able to pick you off if you run at same speed? Do you think they use same network, routing equipment, gateways, etc? Do you remember one ET contributor mentioned that tech team from NASDAQ came to their shop doing presentation and Q&A on how their matching engine works. Their had built a moat around their business and spend lots of money to make sure barrier to entry is high. Just like any other profitable business would.