High-speed trading firm is going to war with the SEC

[trade4succes]

Last week on Tasty Trade, Tom Sosnoff made this exact argument that Payment for Order Flow is a good thing because spreads are tight with high liquidity.

If HFT like Citadel can not improve your price than they will pass order directly to exchange.... Worse case scenario your order is directly routed to an exchange and the HFT will not make money.

Was wondering what other trader's thoughts are?

Here is Tasty trade video from a few weeks ago,

All that glitters is not gold. Sure, spreads look tight and many times you get filled in between. But only when it profits Citadel. When the market is about to go the other way they pull their quotes faster then the speed of light (almost). Add that if you post a limit order in the market, you will only get filled when you do not want to, because the dumb (retail) order flow all goes to Citadel.

 

[SunTrader]

All that glitters is not gold. Sure, spreads look tight and many times you get filled in between. But only when it profits Citadel. When the market is about to go the other way they pull their quotes faster then the speed of light (almost). Add that if you post a limit order in the market, you will only get filled when you do not want to, because the dumb (retail) order flow all goes to Citadel.

Exactly. Like I said previously there is a reason Citadel pays for order flow - and it sure isn't because they want to narrow the spreads retailers see - even if some of the time that is the result.