since GME/AMC-palooza is back on the TL (for some reason, can’t imagine why!) i thought it might be useful to review the fundamentals of the business relationship between MMs and retail brokerages
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Firstly: retail traders access liquidity either by placing a limit order that rests on the book, or by paying for immediate liquidity via crossing the spread (using market or marketable limit orders)
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Replying to @drewg__
good thread. We make very similar points in our paper here https://f.hubspotusercontent10.net/hubfs/4982966/BestEx%20Research%20PFOF%2020210503.pdf …
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Replying to @mittalbestex
its a great paper! i read it as recently as yesterday when citadel started tweeting again lol
7:48 PM - 30 Sep 2021
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