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Fees only kick in if you cancel 100x the orders than you actually execute. And then you only pay half a cent per order over that limit. I was suggesting somet
by kweinber 11y ago
Fees only kick in if you cancel 100x the orders than you actually execute. And then you only pay half a cent per order over that limit.
I was suggesting something much more like a txn fee per order closed above a much tighter threshold (like 3x)
And none of those limits currently apply to registered market makers... And I agree with their exemption from the harsher rule too, but they should bear increased scrutiny and guaranteed liquidity rules for the privilege.
- yummyfajitas 11y agoMarket makers are obligated to keep lots of orders way outside the NBBO in order to maintain an "orderly market". If a trade occurs at $10.00 and then the next trade is $12.00, that's considered "not orderly". So a market maker must keep orders at $10.00, $10.20, $10.40, ..., $11.80, $12.00. This way if someone comes in and buys everything then the sequence of trades will be $10.00, $10.20, $10.40, etc.