4 ms·
Why is it "scummy"? They are obligated to fill your orders at the NBBO. Your fills happen at the same price as if they routed you directly to the exchange.
by yummyfajitas 12y ago
Why is it "scummy"? They are obligated to fill your orders at the NBBO. Your fills happen at the same price as if they routed you directly to the exchange.
- notahacker 12y agoI'm not seeing the retail investor with their zero-commission trades at the NBBO suffering here, but isn't the routing (and other paid-for-routings) marginally reducing liquidity for other participants in the market?
- yummyfajitas 12y agoMost retail investors will be taking liquidity, not providing it. However, the market makers buying order flow are indeed gaining an advantage over the others. In short, this is a way for HFT A to beat HFT B.