That's why you need a broker with inline risk checks
SIP latency: How Rigged Are Stock Markets?Evidence from Microsecond Timestamps
- Thread starter stochastix
- Start date
"Can retail brokerages like Schwab provide this service for a small mom and pop retails like me?"
As you are coming off the old oX Smart you will route off the private feed of whoever is programmed into smart. New SIPs are simply a proposal now and you would always see the SIP as a quote - as has been pointed out anyone who routes of the SIP is a dinosaur.
FINRA 2090 - know your customers - pretty much means DMA in securities is sort of a fantasy.
The ability to redistribute the exchange "private feed" and put it on your machine I'm really not sure of. Unlike the SIP I believe the private feed doesn't allow redistribution for free, but it's been a while since I've been on the sell-side. I'll pull some contracts and look, but my best guess is no.
As you are coming off the old oX Smart you will route off the private feed of whoever is programmed into smart. New SIPs are simply a proposal now and you would always see the SIP as a quote - as has been pointed out anyone who routes of the SIP is a dinosaur.
FINRA 2090 - know your customers - pretty much means DMA in securities is sort of a fantasy.
The ability to redistribute the exchange "private feed" and put it on your machine I'm really not sure of. Unlike the SIP I believe the private feed doesn't allow redistribution for free, but it's been a while since I've been on the sell-side. I'll pull some contracts and look, but my best guess is no.
You have to pay quite a bit more for redistribution,
"FINRA's Know Your Customer Rule (FINRA Rule 2090) may also cause firms to ask questions to open and service your account. In addition, the SEC requires firms to attempt to obtain a customer’s name, tax identification number, address, telephone number, date of birth, employment status, annual income, net worth (excluding primary residence), and investment objectives regarding certain accounts. Firms also are required to put procedures in place to verify the identity of any person seeking to open an account. Before opening an account, a firm must obtain, at a minimum, the name, date of birth, address and identification number (for example, a social security number) of a customer."
tons of foreigners are doing DMA in the US markets and have been for years. why is rule 2090 such a big deal?
Because a money line and suitability need to be cleared. DMA is pretty much a fantasy for retail. What prevents me from sending an unsuitable order or an order that exceeds your money line. It's about as real for retail as the land of Oz.
What prevents me from sending an uncovered index option if I'm not approved. The order get's read electronically before it ships. Some JBOs and some 169Js, but it's a fiction in pure retail
What prevents me from sending an uncovered index option if I'm not approved. The order get's read electronically before it ships. Some JBOs and some 169Js, but it's a fiction in pure retail