the latest issue of "trader" magazine contains an interesting article on the state of the day trading industry. there is a movement underway by the securities traders association STA to eliminate access fees and liquidity rebates--- if they are successful it will supposedly put serious hurt on the remaining equity prop firms. time will tell. www.tradersmagazine.com the site has not been updated yet to include the latest issue referenced above. best, surfer
Marketsurfer, Does the article mention what benefit would the STA derive from such action? Regards, Dave Scott
That sucks. Think of all the money saved if you never hit a bid or lifted an offer! Now they want to take it away. Geeeeeeeeeeeeeesh.
Hey Market, You know the more I think about this, I remember a conversation I had about 8 months ago in regards to the end of rebates with a friend of mine. Part in due to the fact that some MM's were simply just not paying the bill. As a matter of fact if I recall, ATTN had a lawsuit about this along with a few others. Think of this simple analogy, If you get a speeding ticket and just choose not to pay and get away with it you'll spread the word and others will follow. So why should the ECN's offer a rebate, if they are getting stuck on the other side?
dave, the article states that the STA believes rebates and access fees lead to a convoluted rate structure, locked and crossed markets. day trading firms taking advantage of the rebates are the prime culprit per the STA. surfer
great....then NITE and MASH will have a bigger market..ATTN and NXTD would be done....but the SEC has been talking this talk for years