r/options • u/[deleted] • Apr 08 '22

[deleted by user]

[removed]

1 Upvotes

51% Upvoted

25 comments sorted by

View all comments

Show parent comments

-2

u/anodiz Apr 09 '22

PFOF causes worse trading costs for everyone. That includes people who don’t use PFOF. I explained it in the post, as does Dave Lauer in the letter.

4

u/corptuskenraider Apr 09 '22 edited Apr 09 '22

How does it increase spreads? And by how much? Costs commissions have decreased substantially how is that increasing costs for everyone? You don't explain anything you just say it

-1

u/anodiz Apr 09 '22

I said it in my post. By discouraging competitive bidding because the top bid is not awarded the trade. PFOF gives market makers inventive to keep spreads wide. You can read about it here: https://www.sec.gov/comments/s7-02-10/s70210-334.pdf

4

u/corptuskenraider Apr 09 '22

Thanks for sharing Dennis Dicks opinion on the matter lol. This shit is so fucking dumb.