So what will be their edge now? Definitely not their platform b/c nobody cares. Their presumably low fees were always their sales pitch.
Connectivity. Nobody offers more asset classes and exchanges in So many markets all in one package than IB. This and their technology stack, no matter how crappy parts of it may be) are a major selling point. Their edge has never been their market making operations.
Right, and where are all the market makers today? Nonexistent. And yet buy side firms turn over the same millions of shares over time than ever. Whether it be dark pools or block/program trades or other means, the market can do perfectly well without more middle men. All those marker makers did in the past was to take another chunk out of the market.
else why would they exit this business? Nobody forces them. It has not been meeting the revenue and profit expectations of the PP, its CEO.
Can you reference an article online, where they say they are shutting down Timberhill? I can't find one.
I was surprised to hear such myself at first but it seems indeed true. https://www.elitetrader.com/et/threads/is-interactive-brokers-selling-timber-hill.304185/