The most shocking thing about equity microstructure is how little it's evolved over the past decade. Look at the breakneck innovation in exchanges, liquidity, and market structure from 1990-2010. I would have never imagined we'd basically trade the same way in 2021 as 2009.
Why do you think that is? Competition is certainly evolving in the US & things like retail access are improving, but market seems saturated & only evolution seems to be race to the bottom/regulatory crackdown on fees
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Meanwhile, digital assets are providing an interesting laboratory testing theories. No OPR, no standard tick sizes, no caps on fees, no standards for exchange uptime/change management, & more, yet they function reasonably well. Can they improve? YES, but not to go backwards
Thanks. Twitter will use this to make your timeline better. UndoUndo
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I’m not sure… One, maybe we’re at the end of history. Current solutions fully satisfy end users…. Two, maybe barriers to innovation. Either regulatory, institutional or even lack of imagination… The former is tempting, but innovation is never obvious from the outside.
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Still plenty of innovation to be had on tick sizes, lots of the most liquid names are tick constrained basically all the time.
@AlexanderGerko to his credit has been pounding the table on this subject - Show replies
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