Self Clearing and Pricing

ticketwatcher,
i never understand why a fund will take a zero commission (payment for flow) when any intelligent trader knows that they will have to pay the spread to the sales/trader on the institutional desk. Anyone getting free commissions is paying for it in more ways than one.

For example, E-Trade gets paid for each market order. E-Trade wins with double commissions earned and the BD they send the orders to theoretically should win since they make the client pay the spread. The only loser in the equation is the client sending the order.
 
Def,

I didn't set up the fund or management fees. Every order went to the BAC desk. We would tell them that we wanted 50K executed at X price and they would work the order. The current price /spread wasn't an issue They just wanted these blocks at the specified price. Some of the stocks were really illiquid. The fund wasn't scalping, in positions for days/ weeks / months.
 
Originally posted by GHansen
I REALLY hate responding negatively to every single thing you write and I don't want to come across as offensive. If you simply backed up your claims with facts, answered specific allegations (such as how ARCA will improve REDI+), and stopped using "congeniality" to redirect attention from the tough questions, I would have much more respect for your viewpoint.

It is important that traders get the facts. The facts are that ARCA has done nothing to improve REDI+, and I can't see how it will. As for software, if you want to argue that software which improves a traders efficiency and decision making is of little value, then that is your choice. But that is not a logical position, and not something I would claim in public if I were you.
More...

OK, once again...the main reason that the merger has helped Redi is the additional server farms that keeps the speed up and increases overall reliability. The programming of Redi is already fine...we have all the toys, Redi REserve, scaling, directing, and all the rest.

Now it's your turn, if one is going to shout out vague negatives, tell me about your software, whatever you think is so much better than Redi. Give me specifics about what you have that is making you money...then we can compare notes in a postitive fashion.

Don
 
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