throwacomment

4 ms·

1. 1.▲
   by throwacomment 2y ago

   PFOF does two things and you're only focusing on half of it. 1. It segments the counterparty they trade with. 2. They get dibs on new orders arriving. You're only talking about 1. I'm talking about 2. 1 is also bad because th
2. 2.▲
   by throwacomment 2y ago

   Then find a way to tell everyone this in the open, not just Citadel. Then anyone else is free to trade against you. There can even be a micro-auction to get you the best price among all counterparties that want to trade with you. There&#x27
3. 3.▲
   by throwacomment 2y ago

   I'm not talking about you getting a worse price today . Suppose in some other industry, some monopolist consistently sells goods at a loss to drive out all the competition. In the last moments when they are doing this, yes its cheaper
4. 4.▲
   by throwacomment 2y ago

   Does anyone rebates 100% of the borrow fee or did that initially?
5. 5.▲
   by throwacomment 2y ago

   Yes, PFOF is woefully misunderstood but its very much not win win win. The reason its bad is because its anti-competive and gives them information that no-one else has access to. By trading against you, Citadel prevents any other potential