Interactive Brokers - Receives Payment for Order Flow or Not?

Discussion in 'Order Execution' started by NeoTrader, Aug 5, 2015.

  1. InfoTech

    InfoTech

    Myself. But that could change, since def suggested I PM him to discuss a compliance position.

    This is your 3rd attempt to run me off of this thread.

    Good luck to you.
     
    #81     Aug 13, 2015
    volpunter likes this.
  2. sprstpd

    sprstpd

    I'm not trying to run you off so stop saying that. I'm just interested what your motivation is here since it is obvious you feel like you have some smoking gun against IB. What's your ultimate goal? Who are you working for?
     
    #82     Aug 13, 2015
  3. InfoTech

    InfoTech

    The topic interests me. I am also reading Scott Patterson's book, Dark Pools.

    http://www.amazon.com/Dark-Pools-Machine-Traders-Rigging/dp/0307887189

    Check it out. Same author who wrote The Quants. There's even some good history on GETCO, Timber Hill, ATD, and others. Nothing nefarious in there about IB, just coverage of a (still) new frontier.

    IB's statements on PFOF and dark pool participation can be confusing, hence the genesis of this thread.
     
    #83     Aug 13, 2015
  4. > reading Scott Patterson's book, Dark Pools

    Why? He's a journo with no industry experience, to my knowledge, and shallow, superficial understanding of the markets. Spend your valuable time reading books by practitioners who've made real money and know the real story.

    Wiki: Patterson has as Master of Arts and English degree from James Madison University...
     
    #84     Aug 13, 2015
  5. rmorse

    rmorse Sponsor

    Keep in mind that many of these books a biased against the industry. They often don't tell a balanced story.
     
    #85     Aug 13, 2015
    debitspread and InfoTech like this.
  6. InfoTech

    InfoTech

    I don't disagree, and I recognize the bias (subtitle of Dark Pools is "the Threat to the Global Financial System," for example). But on the topic of dark pools mechanics, I'm not aware of any written from the perspective of a trader or dark pool operator.

    Any suggestions?
     
    #86     Aug 13, 2015
  7. rmorse

    rmorse Sponsor

    Dark pool operators don't want details known about how they operate. Same with "Smart" routes. No one will provide details.
     
    #87     Aug 13, 2015
    debitspread likes this.
  8. i960

    i960

    And we continue to see many of them getting busted for front running their own clients.
     
    #88     Aug 13, 2015
    hajimow and volpunter like this.
  9. #89     Aug 13, 2015
    InfoTech likes this.
  10. It's all the outcome of a fragmented American securities market. One of the greatest deceptions by Wall Street and HFT firms is how they try to convince everyone that HFT is to be lauded for tighter spreads and higher liquidity. I believe the real reasons for tighter and more liquid market is simply two reasons: electronic markets in general and decimalization. If the stupid fragmentation regulation had never been put in place you would have a perfectly functioning market in the US. What you got at the moment on the other hand is a circus, where one lies into the face of the other right after stealing the usual fraction of pennies and abuses by dark pool operators.

     
    #90     Aug 13, 2015
    i960 likes this.