Exactly. They've underinvested for years relative to their toughest competitors. And internalizers grab the juicy flow, leaving IBKR to deal with toxic flow.
Well can we have just ONE exchange but with many market makers/specialists and order-matching books/ECN's? So that way we pay ONE exchange fee have ONE set of order-routing rules but have access to all the competition without all of the confusion and inefficient and segmented price discovery process? It's like going to a bazaar or marketplace with all the different vendors there. Would that work better you think?
You've got that with ICE, SPX...And you pay monopoly level trading and data fees, along with an unknown impact on innovation. Bazaars are great, life would suck if you were only allowed to shop at Kmart! Interestingly I participated in another thread where everyone was ranting about ICE and illegal monopolies. The exchange business tends toward monopolies and they're not per se illegal, but I see opportunity in the current options situation.
They have billions in capital. Of course they could compete if they wanted to but they always said no to internalization, no to payment for order flow and no to HFT.
Sure it would. Ask all the special interest to move back to a centralized exchange and 100 entities will be unhappy and 100,000'nds will cheer it.
Disagree here. An exchange should be run and operated like a utility. Strict obligations to deliver, strictly regulated with clearly defined mandate and simply forced to innovate or lose its license and be replaced by someone else. I think comparing the need for equitable and fair markets to shopping salad leaves or shoes at Kmart is a pretty poor comparison.
Hmm Apple also has billions in capital yet cannot compete in the hft game. It's not how much capital one has its simply whether someone's in the game or not and on what level their game is at.
Bullshit they said no to internalization! And directing order flow to your wholely owned subsidiary is effectively the same as getting paid for order flow!
When i opened an my first account with IB 13 years ago clients had $2billion with IB.Today it is $80 billion. How much will they have in 2030?? A trillion or trillions? Why do they need to mess about with market making? It is just a distraction for IB management.