Exactly. They've underinvested for years relative to their toughest competitors. And internalizers grab the juicy flow, leaving IBKR to deal with toxic flow.
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IB Quits options game!
- Thread starter SoesWasBetter
- Start date
Exactly. They've underinvested for years relative to their toughest competitors. And internalizers grab the juicy flow, leaving IBKR to deal with toxic flow.
You realize how incongruous it is for a trader to be begging for a monopoly? Capitalism is the most inefficient form of economy....except all the others that have been tried!
Ironically you can find as many or more threads complaining about the monopoly ICE has and uses to charge high data fees and limit product offerings, right here on ET. Overall exchanges tend toward a monopoly or a few players with tacit collusion, it's the nature of the increasing returns from liquidity, so we can expect consolidation over time. Not sure there's a good reason to rush that though, you might not like getting what you ask for.
Well can we have just ONE exchange but with many market makers/specialists and order-matching books/ECN's? So that way we pay ONE exchange fee have ONE set of order-routing rules but have access to all the competition without all of the confusion and inefficient and segmented price discovery process? It's like going to a bazaar or marketplace with all the different vendors there. Would that work better you think?
You've got that with ICE, SPX...And you pay monopoly level trading and data fees, along with an unknown impact on innovation. Bazaars are great, life would suck if you were only allowed to shop at Kmart!Well can we have just ONE exchange but with many market makers/specialists and order-matching books/ECN's? So that way we pay ONE exchange fee have ONE set of order-routing rules but have access to all the competition without all of the confusion and inefficient and segmented price discovery process? It's like going to a bazaar or marketplace with all the different vendors there. Would that work better you think?
Interestingly I participated in another thread where everyone was ranting about ICE and illegal monopolies. The exchange business tends toward monopolies and they're not per se illegal, but I see opportunity in the current options situation.
one person, one person in this whole thread gets it. That is about the only impact this will have. Zero market impact, zero impact on options liquidity. The reason they get out is because they can't compete with the top shops on the technology level anymore. Simple as that.
They have billions in capital. Of course they could compete if they wanted to but they always said no to internalization, no to payment for order flow and no to HFT.
Sure it would. Ask all the special interest to move back to a centralized exchange and 100 entities will be unhappy and 100,000'nds will cheer it.
Well can we have just ONE exchange but with many market makers/specialists and order-matching books/ECN's? So that way we pay ONE exchange fee have ONE set of order-routing rules but have access to all the competition without all of the confusion and inefficient and segmented price discovery process? It's like going to a bazaar or marketplace with all the different vendors there. Would that work better you think?
Disagree here. An exchange should be run and operated like a utility. Strict obligations to deliver, strictly regulated with clearly defined mandate and simply forced to innovate or lose its license and be replaced by someone else.
I think comparing the need for equitable and fair markets to shopping salad leaves or shoes at Kmart is a pretty poor comparison.
I think comparing the need for equitable and fair markets to shopping salad leaves or shoes at Kmart is a pretty poor comparison.
You've got that with ICE, SPX...And you pay monopoly level trading and data fees, along with an unknown impact on innovation. Bazaars are great, life would suck if you were only allowed to shop at Kmart!
Interestingly I participated in another thread where everyone was ranting about ICE and illegal monopolies. The exchange business tends toward monopolies and they're not per se illegal, but I see opportunity in the current options situation.
Hmm Apple also has billions in capital yet cannot compete in the hft game. It's not how much capital one has its simply whether someone's in the game or not and on what level their game is at.
They have billions in capital. Of course they could compete if they wanted to but they always said no to internalization, no to payment for order flow and no to HFT.
Bullshit they said no to internalization! And directing order flow to your wholely owned subsidiary is effectively the same as getting paid for order flow!They have billions in capital. Of course they could compete if they wanted to but they always said no to internalization, no to payment for order flow and no to HFT.