Enormous charges for data coming?

[marketsurfer]

Here's a change that just happened

The line "serving the american people" is key. We (traders) are going to get slammed soon



SEC Adopts The T+2 Trade Settlement Cycle

On March 22, 2017, the SEC adopted a rule amendment shortening the standard settlement cycle for broker-initiated trade settlements from three business days from the trade date (T+3) to two business days (T+2). The change is designed to help enhance efficiency and reduce risks, including credit, market and liquidity risks, associated with unsettled transactions in the marketplace. Acting SEC Chair Michael Piwowar stated, "[A]s technology improves, new products emerge, and trading volumes grow, it is increasingly obvious that the outdated T+3 settlement cycle is no longer serving the best interests of the American people." The change amends Rule 15c6-1(a) prohibiting a broker-dealer from effecting or entering into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than T+2, unless otherwise expressly agreed to by the parties at the time of the transaction.

 

[Robert Morse]

Here's a change that just happened

I don't think it starts until September.

 

[WeToddDid2]

Here's a change that just happened

The line "serving the american people" is key. We (traders) are going to get slammed soon



SEC Adopts The T+2 Trade Settlement Cycle

On March 22, 2017, the SEC adopted a rule amendment shortening the standard settlement cycle for broker-initiated trade settlements from three business days from the trade date (T+3) to two business days (T+2). The change is designed to help enhance efficiency and reduce risks, including credit, market and liquidity risks, associated with unsettled transactions in the marketplace. Acting SEC Chair Michael Piwowar stated, "[A]s technology improves, new products emerge, and trading volumes grow, it is increasingly obvious that the outdated T+3 settlement cycle is no longer serving the best interests of the American people." The change amends Rule 15c6-1(a) prohibiting a broker-dealer from effecting or entering into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than T+2, unless otherwise expressly agreed to by the parties at the time of the transaction.

Why are we going to get "slammed soon"? Please elaborate.

 

[Lee-]

is this the old guard Establishment and Exchanges on Wall Street attacking high frequency traders?

If they wanted to attack HFT without also impacting retail, they could add cancellation fees when cancellations exceeded a certain limit, increase fees on their raw data feeds, or exempt non-professionals. Any of these would negatively impact HFT without impacting retail.

That they've not exempted non-professionals and/or high latency consolidated fees shows their intention. The vague wording of the classification would even apply to retail traders who are not doing algorithmic trading, but just collect the data for analysis purposes.

 

[WeToddDid2]

Apparently the way I interact with the data. I have to manually click to send an order after my program filters the data.

So, if a retail trader uses a platform and employs an algo that auto trades the entry and exit, they are whacked with egregious fees? Is that basically your understanding?

Is NYSE trying to level the playing field for HFT hedge funds against the evil retail trader?

Are HFT hedge funds upset that their margins are getting squeezed?

Is RenTech behind this?

 

[marketsurfer]

Why are we going to get "slammed soon"? Please elaborate.

Retail automatic or other traders don't serve the american people. Whenever that language is used, look out cause , here it comes.

 

[stevegee58]

Retail automatic or other traders don't serve the american people. Whenever that language is used, look out cause here it comes.

Um that's a misquote. They were talking about "T+3 settlement cycle" not serving the interests of the american people, not retail traders.

 

[WeToddDid2]

is this the old guard Establishment and Exchanges on Wall Street attacking high frequency traders?

Of are they attacking retail high frequency/really slow algo traders? HF HFTs could give a shit about paying $6,000 a month.

 

[WeToddDid2]

Retail automatic or other traders don't serve the american people. Whenever that language is used, look out cause here it comes.

Got it. Thanks.

So only buy and hold serves the American people. Liquidity is a terrible thing.

Perhaps next they will propose to outlaw selling until age 67 and then RMDs after 70.5.

 

[FSU]

So, if a retail trader uses a platform and employs an algo that auto trades the entry and exit, they are whacked with egregious fees? Is that basically your understanding?

To be honest I really have no understanding on what really constitutes chargeable non-display fees. It seems to depend on how aggressive your broker or platform views the rules, which are hard to understand.