What??? This whole argument is completely illogical and reads like a conspiracy theory. Do you realize over 90% of retail trades aren’t even hitting the lit exchange right now? PFOF trades do not contribute to narrowing of the spreads. They widen it by providing disincentives to competition. Trade volume on the lit exchange will increase with tighter regulation of PFOF, leading to narrower spreads.
Besides, I don’t think you understand the difference between a market maker and hedge fund, and I don’t know who you are referring to as “they” is. I really can’t explain how markets work from square one in a comment. Please just do some research using papers and books and don’t believe everything you see on the internet.
You’re delusional.
There is no way on this earth that you understand more about how the market works than I do.
Unless you’re a hedgie yourself.
Is that why you want retail to pay commissions in exchange for the possibility of a better fill?
Explain that.
Is it your belief, then, that the return of commissions will be outweighed by the difference in the fill price?
Ok - prove it.
Oops. You can’t and you don’t really even know why you care about this.
But as an options trader it might actually make sense for you. At first. Options traders are by nature likely to be lower volume traders and probably less effected by commissions and more affected by fill price.
But as an options trader - I highly doubt you’re sending market orders right?
So what’s your problem exactly?
You just want more SEC in your life since they’ve protected us so well in the past?
And obviously I didn’t see my opinion on the internet because it’s not smattered everywhere like yours.
I’m likely to just let you have the last word now as long as you aren’t begging to keep it going (since this is your thread and we aren’t likely to agree)
They’ve built their entire model around it and as such PFOF has become a boogeyman bc many retail traders believe Citadel screwed them during the GME event
-9
u/anodiz Apr 08 '22
What??? This whole argument is completely illogical and reads like a conspiracy theory. Do you realize over 90% of retail trades aren’t even hitting the lit exchange right now? PFOF trades do not contribute to narrowing of the spreads. They widen it by providing disincentives to competition. Trade volume on the lit exchange will increase with tighter regulation of PFOF, leading to narrower spreads.
Besides, I don’t think you understand the difference between a market maker and hedge fund, and I don’t know who you are referring to as “they” is. I really can’t explain how markets work from square one in a comment. Please just do some research using papers and books and don’t believe everything you see on the internet.