marketmakerx

3 ms·

1. 1.▲
   by marketmakerx 5y ago

   Where can I read this
2. 2.▲
   by marketmakerx 5y ago

   The flow on the market becomes much more toxic after the uninformed retail flow is siphoned away.
3. 3.▲
   by marketmakerx 5y ago

   Not by definition. If that uninformed flow is going to market, there is a good market design to encourage price competition among MMs who fight each other for time and price priority. That mechanism is obstructed under payment for flow. Und
4. 4.▲
   by marketmakerx 5y ago

   The NBBO would be narrower without wholesale market makers.
5. 5.▲
   by marketmakerx 5y ago

   What they ignore is that the NBBO spread is made larger by this practice. By siphoning off all the uninformed flow, leaving only the toxic flow, this then causes people to quote wide spreads on regular exchanges, making the NBBO spread larg