New SEC proposals: Major changes to wholesale execution and odd lot reporting

Databento said:
Pretty much. Pages 70-72 have an example: https://www.sec.gov/rules/proposed/2022/34-96495.pdf

The order goes through an auction process that lasts less than a second, during which counterparties can submit an auction response. The wholesaler would need to get an cancel ack for the order or unexected portion of the order before they may internalize. In some ways this resembles RFQs that are widely present in fixed income and options on futures.
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THANKS;
wow/ there is a lot of info in that 397 page SEC study.
''Average PFOF brokers received is $00.10- .20 for 100share order''
That's a lot better than average cost used to be+ way, way better when all did it in fractions bid/ask LOL:D:D
T Rowe Price + IBKR,SCHW ......may use limit orders more but they are looking for thier interests as all should.
I figure between the brokers, market makers- wholesalers + all... it will work out well .
Interesting that study, says most investors traders use market orders; i use them mostly for exits.
Ken G said in WSJ, DEC 2022, he would rather not pay PFOF , big expense, so it should work out regardless.:caution::caution:
 
The 40 trades per day thing makes little sense. If you trade a lot then you don't deserve to get good prices anymore? huh?

The other issue is, what kind of barriers to entry will there be to become a counterparty in the auctions. Ideally anyone should be able to participate. If it's just the same entities that buy flow today as the counterparties, then it's not that big of an improvement
 
Proof has been presented numerous times of the advantage of pfof with zero commissions. If you think differently there are plenty of brokers that will accomodate you. It is enough already that certain People on ET wish to outlaw the practice to feed their own agenda.
Pay commissions if you want but quit trying to force others to trade your way.Let me decide for myself which route I want to take.
 
zdreg said:
Proof has been presented numerous times of the advantage of pfof with zero commissions. If you think differently there are plenty of brokers that will accomodate you.
Pay commissions if you want but quit trying to force others to trade your way.Let me decide for myself which route I want to take.
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Exactly+ entry limit orders work well. I use market orders mostly on exits
SEC had some good points in their 397 page study;
but too much gov regulation is NOT good+ that's why some metal dealers dont want empty brass shells.:caution::caution:.
LOOKS like WSJ[DEC paper] is right, we dont want SEC to play Robbin Hood.LOL+true:D:D
Robbin Hood was an old outlaw, who liked to rob the rich that were ignorant of the 2nd ammendment .........
 
zdreg said:
Proof has been presented numerous times of the advantage of pfof with zero commissions. If you think differently there are plenty of brokers that will accomodate you. It is enough already that certain People on ET wish to outlaw the practice to feed their own agenda.
Pay commissions if you want but quit trying to force others to trade your way.Let me decide for myself which route I want to take.
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The issue isn't whether you are better off today choosing a zero commission broker who sells flow, or a commission broker who doesn't.

The issue is, would you be better off in the future if PFOF were replaced with a structure that creates true competition to fill retail orders. Simple economic theory says yes.
 
cruisecontrol said:
The issue isn't whether you are better off today choosing a zero commission broker who sells flow, or a commission broker who doesn't.

The issue is, would you be better off in the future if PFOF were replaced with a structure that creates true competition to fill retail orders. Simple economic theory says yes.
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You may be right cruise control;
but the WSJ[editorial page] is right ,much more right than wrong. And they are against this newest SEC proposal.
Looks like there are plenty of MM, +specialists now.
Alphabetical order=Citadel- thru Wolverine.................................................
I will admit the SEC study is very well done, no doubt Mr G Gensler's 18 years @GS helps him a lot.
My bottom line is capital markets know much more than anyone, even GS.
And like Mr. L Blankfein [old school GS] told WSJ this year, things are usually not as bad as they appear:D:D
 
I am fine with the way things are (brokers/MM) for stocks. We know how it works. If the SEC wants to change it...Fine.

Here is my issue...Options not going to a market. This happened at Schwab and I'm still pissed off. Example, covered call...Sell to open. Say it was bid/ask $2.00-$2.20...I put my price in at $2.10 and it was not placed on any market for price discover. It stayed at Schwab (and their market makers), without being exposed to any markets!!

Expose it to a market (for a nanosecond), and then take it back...I am fine with that. But, DO NOT POCKET MY ORDER!!!
 
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