LOL, I love it , the Bright brothers blessing credit trading. This should be good for some interesting advertising. I can see the headlines now, The next BIG merger, Peter Beck and the Bright brothers team up to dominate the markets.................. lolololol
u got thaty right, they've been provided with new and excellent auto-theft tools, already at work with extreme efficiency,
What's amazing is that the Bright guys don't get picked off at bad times so often that it negates the price improvement they get on occasion. I mean you're market making without order flow. If theres news , good or bad, don't you guys get crushed? guess not, there are thousands of Bright traders making extra millions as we speak. lol. Im just jealous,
Shreddog, good point on the OO being exempt from the Reg NMS but the edge in OO comes for a single source of liquidity - a big block of stock for sale on the 1st print that can be exploited by 1 man (Spec) with his minions ( the OO guys) . Reg NMS could disperse that liquidity since the regionals,ECN's can now fight for that liquidity. I hope you are right and the oo stays. Some of us need those extreme prints for gamma scalps
Seeking out additional profits on Listed stocks is our primary goal, I don't see any humor in that....and we will do it legally, of course. Never offered on NYSE stocks before, things change, we adapt. Don
Yep adapting is key. Don can you clarify what mean by credit trading? You guys are just going to be enveloping but offering on arca and out on NYSE right. You guys are not going to be invading LU trying to actually liquidity trade just the rebate are you? I think if anything, perhaps your enveloping calculations would need to be adjusted and orders laddered and rerouted instead of just receiving improvement. I'm not sure why people would think you would go into liquidity rebate trading as we know it like swift.
You have it right, simply placing orders on ARCA book vs. NYSE. No (silly) credit trading for credit sake alone. Keeping things legal, as I mentioned above. If we're going to provide liquidity to a marketplace, we want to maximize our profit potential. This will be a fun few months until the NMS rule kicks in (Feb). More adapting, and I've asked for input from all my traders... see how best to adapt to these changes. Don
Don also gave a reason in a couple of posts http://www.elitetrader.com/vb/showthread.php?s=&postid=995413#post995413
The win loss rate with price improvement is extremely high. The "specialist bashers" would even agree...it's because we are "on the same side" as the specialist when this happens. He may get "picked off" once in a while, but not often. Simple strategy...."trade with the guy who makes the money, not against him". Don