What’s wrong with the following market structure idea? 1. Set up an order book that only retail brokers can send orders to, call it APEX for example. 2. Whenever a retail broker receives a marketable order, send it to the venue with the best price (either APEX or a lit venue)
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Yes, to be sure, and the process could be managed in any number of ways. I would bet that +98% of people seeing buttons labeled “Keep it Free!“ and “Take Control” would immediately select the free option and happily continue with business as usual.
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Alternatively you ask people to choose when they open the account. But do most people opening a new brokerage account know enough to make an informed choice?
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