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Helping investors become smarter & more informed about exchanges.

LOST IN THE CITADEL SECURITIES
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    1. Marc Rubinstein‏ @MarcRuby 1 Sep 2020

      Marc Rubinstein Retweeted Adam Keesling

      “American democracy has always been at war against monopoly power.” That's how the chair of the House subcommittee kicked off his hearings on online platforms and market power. But has it? The case of NYSE itself would suggest otherwise. Thread👇https://twitter.com/adam_keesling/status/1298325694179491841 …

      Marc Rubinstein added,

      Adam Keesling @adam_keesling
      [New Guest Post] This week @MarcRuby of Net Interest wrote an excellent piece for Napkin Math about the NYSE and how they had a monopoly, lost it, then built it back up again I think you'll enjoy this one 👇 https://napkinmath.substack.com/p/the-quest-for-monopoly …
      1 reply 0 retweets 3 likes
      Show this thread
    2. Marc Rubinstein‏ @MarcRuby 1 Sep 2020

      Like other platforms, stock exchanges benefit from network effects. As traders say, liquidity begets liquidity. In C19th, New York had a slight edge over Philadelphia. That edge grew and New York went on to dominate domestic stock trading for over 100 years.

      1 reply 0 retweets 0 likes
      Show this thread
    3. Marc Rubinstein‏ @MarcRuby 1 Sep 2020

      But at the end of C20th the foundations shifted. NYSE's customers got stronger and as technology got cheaper, they wanted in. They lobbied policymakers and by 2005, NYSE's monopoly was broken. Its customers set up their own venues and NYSE went on to lose half its market share.pic.twitter.com/mYhE499OAV

      Matthew Kobach
      1 reply 0 retweets 0 likes
      Show this thread
    4. Marc Rubinstein‏ @MarcRuby 1 Sep 2020

      But wait. The new rules that broke NYSE's monopoly in trading paved the way for them to capture a new monopoly further up the stack, in data and connectivity. And as every trader knows, data and trading go together like gas and cars or babysitters and dinners out.pic.twitter.com/kL8l15EZW7

      Corry Wang
      1 reply 0 retweets 1 like
      Show this thread
    5. Marc Rubinstein‏ @MarcRuby 1 Sep 2020

      Soon NYSE was giving its trading away for free and shoring up its position in data and connectivity.pic.twitter.com/CuzLPJbbh5

      1 reply 0 retweets 1 like
      Show this thread
    6. Marc Rubinstein‏ @MarcRuby 1 Sep 2020

      Unsurprisingly, customers aren’t happy. The lobbying has started and the cycle has begun again. From fragmentation to monopoly, to fragmentation to monopoly, to... To see what's next, sign up to Net Interest for an update this Friday.https://netinterest.substack.com/ 

      1 reply 0 retweets 1 like
      Show this thread
      Hide Not Slide‏ @HideNotSlide 1 Sep 2020
      Replying to @MarcRuby

      pic.twitter.com/q29LNGloxe

      8:24 AM - 1 Sep 2020
      • 1 Like
      • Marc Rubinstein
      0 replies 0 retweets 1 like

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