Maker-Taker Debate: Money Managers Weigh-In

Discussion in 'Wall St. News' started by InfoTech, Jul 16, 2015.

  1. InfoTech

    InfoTech

    http://www.pionline.com/article/201...sec-for-limits-on-brokers-maker-taker-rebates

    But at least one market participant disagrees that maker-taker is necessary. Joseph Saluzzi, partner, co-founder and co-head of equity trading of Themis Trading LLC, a Chatham Township, N.J.-based agency broker for institutional investors said the link between liquidity and maker-taker doesn't exist. What maker-taker does increase, Mr. Saluzzi said, is volume. “Liquidity and volume are two different things,” Mr. Saluzzi said. “Maker-taker creates volume, and a lot of that is artificial.”

    Mr. Saluzzi said liquidity access is not helped through maker-taker, but by changes in a fragmented market structure that would reduce the number of trading venues. “Liquidity is not helped by rebates, but by less fragmentation,” Mr. Saluzzi said. “Maker-taker is the linchpin of the problems with the market. It's a relic of a system that was around 15 years ago.”