WSJ: 5 cent increments for 1,000 smallcap stocks starting May 2016

[i960]

This is crap nonsense designed to benefit Wall St firms as usual.

Lack of liquidity is a result in lack of interest in a rigged market. Kill the fragmentation, severely hamper HFT, outright ban payment for order flow, and return the market to some state of organic behavior and then you'll see increased volume. Until then, no thanks on equities!

 

[volpunter]

Agree full heartedly.

Additionally, liquidity in small cap names will probably improve due to this regulatory change but transaction volume will most likely fall.

This is crap nonsense designed to benefit Wall St firms as usual.

Lack of liquidity is a result in lack of interest in a rigged market. Kill the fragmentation, severely hamper HFT, outright ban payment for order flow, and return the market to some state of organic behavior and then you'll see increased volume. Until then, no thanks on equities!

 

[i960]

BTW if I remember correctly this was also the decision making process whereby retail firms were locked out of the decision making process but firms like Citadel were invited to the table. That speaks volumes.

 

[fickletrader]

This feels like a stealth tightening by regulators instead of the monetary policy tightening by central banks that we're all accustomed to. Regulators forcing wider bid-ask spreads to increase liquidity is the opposite argument we hear from the HFT firms justifying their existence: that without them making a market, bid-ask spreads would be wider, thus raising the overall transaction costs of the investing public.

Traders Millions By The Minute Season 1 Episode 1 Full Episode (43:47 start time)

"We do millions of transactions every day. If I switch my machines off tomorrow, then everybody that did business with me today would get potentially a worse price than they would have otherwise gotten." -- Remco Lenterman

My guess is that this experiment will have a very similar effect as raising margin requirements for all of the applicable stocks. Another outcome will be deeper queues at the bid and the ask, so those with fancy order types and expensive data feeds can more easily jump in front of the rest of us who otherwise could have moved ahead in line by adjusting our price tighter.

 

[volpunter]

ridiculous series. Screen traders looking at market dept and times of sales? Hilarious. And that guy nets a reported 250k-500k a year by following people at a subscription service called T3 Live? You gotta be kidding me. I hope newbies don't have an orgasm over this bullshit.

And check out the ho's email box. Not one email pertains to anything finance related, trading related or wealth management related:

This feels like a stealth tightening by regulators instead of the monetary policy tightening by central banks that we're all accustomed to. Regulators forcing wider bid-ask spreads to increase liquidity is the opposite argument we hear from the HFT firms justifying their existence: that without them making a market, bid-ask spreads would be wider, thus raising the overall transaction costs of the investing public.

Traders Millions By The Minute Season 1 Episode 1 Full Episode (43:47 start time)

"We do millions of transactions every day. If I switch my machines off tomorrow, then everybody that did business with me today would get potentially a worse price than they would have otherwise gotten." -- Remco Lenterman

My guess is that this experiment will have a very similar effect as raising margin requirements for all of the applicable stocks. Another outcome will be deeper queues at the bid and the ask, so those with fancy order types and expensive data feeds can more easily jump in front of the rest of us who otherwise could have moved ahead in line by adjusting our price tighter.

 

[zdreg]

ridiculous series. Screen traders looking at market dept and times of sales? Hilarious. And that guy nets a reported 250k-500k a year by following people at a subscription service called T3 Live? You gotta be kidding me. I hope newbies don't have an orgasm over this bullshit.

And check out the ho's email box. Not one email pertains to anything finance related, trading related or wealth management related:

View attachment 152501

it doesn't begin to compare to the supposed performance of your phantom "friends" HK hedge fund traders who are pulling one percent out of the market on a daily basis,thereby netting after the stamp tax 358% on invested capital.
http://www.elitetrader.com/et/index...-all-stock-trades.290746/page-10#post-4109588

 

[fickletrader]

Dear volpunter:

Why not focus on the 45 seconds interview with Remco Lenterman I was calling out, starting from 43:47 in the youtube instead of taking us off topic with some flamebait screenshot you made from some random part of that show that nobody was even talking about. Glad you're reading along with the thread and not just attacking commenters at random!

Kind regards,
ft

ridiculous series. Screen traders looking at market dept and times of sales? Hilarious. And that guy nets a reported 250k-500k a year by following people at a subscription service called T3 Live? You gotta be kidding me. I hope newbies don't have an orgasm over this bullshit.

And check out the ho's email box. Not one email pertains to anything finance related, trading related or wealth management related:

View attachment 152501

 

[volpunter]

So you are saying you ask to be taken seriously by making a point and supporting the point with a quote from the Muppets Show?

Dear volpunter:

Why not focus on the 45 seconds interview with Remco Lenterman I was calling out, starting from 43:47 in the youtube instead of taking us off topic with some flamebait screenshot you made from some random part of that show that nobody was even talking about. Glad you're reading along with the thread and not just attacking commenters at random!

Kind regards,
ft

 

[zdreg]

Dear volpunter:

Why not focus on the 45 seconds interview with Remco Lenterman I was calling out, starting from 43:47 in the youtube instead of taking us off topic with some flamebait screenshot you made from some random part of that show that nobody was even talking about. Glad you're reading along with the thread and not just attacking commenters at random!

Kind regards,
ft

from volpunter: So you are saying you ask to be taken seriously by making a point and supporting the point with a quote from the Muppets Show?

you were rightly kicked by volpunter for trying to butter him up. not everything in life can be foreseen but this was an easy one.

 

[m22au]

This type of semi-retarded reductio ad absurdum is why these boards are mostly not worth contributing to.

Instead of name-calling, you could have described the benefits (and how those benefits outweigh the negatives) of widening spreads from 1 cent (or less) to 5 cents. But you've failed to do so.

Also, if a 10 cent or 20 cent spread is considered absurd, what is so normal about an artificially wide 5 cent spread? At what point does an artificially wide spread stop being normal, and become absurd? 6 cents? 7 cents? 9 cents?

.