"Wasn't this about the time they instituted the whole Pro Customer fee schedule? Basically now if you put too many orders in (390 average per day) you pay much more in exchange fees."
Nope - almost two decades earlier with the RAEs bandits. They look to achieve the same result and the Feds never allowed it so the last iteration was the institution of the cancel fees and the firms were never OK with it so when they'd get hit they would change primaries. You also had the beginning of fragmentation to a high level when the ISE kicked off in 2000.
For a while, the ISE had a "third market" that allowed the customer to make two-sided markets in a number of less liquid names. Nobody came to that party.
Generally, people want to make markets in the most liquid names and then lift when it gets volatile. They are generally paired orders and you just slow down the network and make it difficult to enforce NBBO.
Schwab had a customer in NJ who was making seven figures a week doing exchange arb in Leaps. The problem got really ugly when they got busts days after the trade. Great way to win friends. In his heyday, he had six or seven Schwab support people on his account.
Nope - almost two decades earlier with the RAEs bandits. They look to achieve the same result and the Feds never allowed it so the last iteration was the institution of the cancel fees and the firms were never OK with it so when they'd get hit they would change primaries. You also had the beginning of fragmentation to a high level when the ISE kicked off in 2000.
For a while, the ISE had a "third market" that allowed the customer to make two-sided markets in a number of less liquid names. Nobody came to that party.
Generally, people want to make markets in the most liquid names and then lift when it gets volatile. They are generally paired orders and you just slow down the network and make it difficult to enforce NBBO.
Schwab had a customer in NJ who was making seven figures a week doing exchange arb in Leaps. The problem got really ugly when they got busts days after the trade. Great way to win friends. In his heyday, he had six or seven Schwab support people on his account.
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