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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Replying to @macrocephalopod
I was thinking about this after the spaces, and would it not be easy for retail brokers to just allow customers to opt out of having their flow routed through a market maker? Let the consumer decide if they’d rather have the tighter spread/better execution or not.
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Replying to @TCK_JRubano
In principle sure — in practice most people are never going to think about it so it makes a huge difference whether it is opt out or opt in.
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Replying to @macrocephalopod @TCK_JRubano
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?
5:41 AM - 1 Oct 2021
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