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Exactly. Basically they took the money being made by institutions trading against individuals, and turned it into a check back to the brokerages. That said, I
by slownews45 5y ago
Exactly. Basically they took the money being made by institutions trading against individuals, and turned it into a check back to the brokerages.
That said, I hate how much volume is handled off book with these pricing approaches so not a huge fan of it?
- qeternity 5y ago> off book What do you mean?
- gruez 5y agoprobably meant "not being routed to open exchanges".
- qeternity 5y agoYeah, just wanted to be clear. Off book means something else.
- slownews45 5y agoSorry. To be more specific. Some of the orders can be internalized. Not sure how often this occurs: "The practice of internalization is prevalent in the Nasdaq market where Nasdaq market makers, who often pay for order flow or are sent order flow by an affiliate, trade proprietarily against incoming customer orders. NASD rules do not require Nasdaq dealers to expose their internalized orders to competitors." On the markets - since so much retail volume is off the market, yes, the market maker has to price improve, but it's against a less than full picture of the market for thinly traded items.
- qeternity 5y agoI’m familiar…I spent most of my career trading for hedge funds. “Off book” has a different meaning, which is why I asked.