IBKR -LOL

[gkishot]

market making is a dying business. Markets are sufficiently efficient enough to not necessitate market makers. In the same way as specialists were never necessary, nor floor brokers. As long as there is a market place where supply can meet demand then that is all one needs.

By the way, IB's Peterffy stated this exit himself in one of the more recent conf calls.

So what will be their edge now? Definitely not their platform b/c nobody cares. Their presumably low fees were always their sales pitch.

 

[sprstpd]

Markets are sufficiently efficient enough to not necessitate market makers.

Maybe if you have 100 shares to trade.

 

[Zzzz1]

Connectivity. Nobody offers more asset classes and exchanges in So many markets all in one package than IB. This and their technology stack, no matter how crappy parts of it may be) are a major selling point. Their edge has never been their market making operations.

So what will be their edge now? Definitely not their platform b/c nobody cares. Their presumably low fees were always their sales pitch.

 

[Zzzz1]

Right, and where are all the market makers today? Nonexistent. And yet buy side firms turn over the same millions of shares over time than ever. Whether it be dark pools or block/program trades or other means, the market can do perfectly well without more middle men. All those marker makers did in the past was to take another chunk out of the market.

Maybe if you have 100 shares to trade.

 

[gkishot]

Their edge has never been their market making operations.

How do you know that?

 

[Zzzz1]

else why would they exit this business? Nobody forces them. It has not been meeting the revenue and profit expectations of the PP, its CEO.

How do you know that?

 

[Robert Morse]

else why would they exit this business? Nobody forces them. It has not been meeting the revenue and profit expectations of the PP, its CEO.

Can you reference an article online, where they say they are shutting down Timberhill? I can't find one.

 

[gkishot]

else why would they exit this business? Nobody forces them. It has not been meeting the revenue and profit expectations of the PP, its CEO.

I never heard that they do. Link please? I might find some explanation there.

 

[Zzzz1]

I was surprised to hear such myself at first but it seems indeed true.

https://www.elitetrader.com/et/threads/is-interactive-brokers-selling-timber-hill.304185/

Can you reference an article online, where they say they are shutting down Timberhill? I can't find one.

 

[Robert Morse]

If I could find your statement, I would not ask. I can't find any reference.