I heard today that we will now be paying a $2 per thousand Soes fee. Basically nasdaq is making an ECN fee for Soes. What a crock of Sh$t. This is going to effect all scalpers. I can't believe what has happened to the market this year. First we have to change to decimals. then this Supersoes crap, now a fee on it. Are they trying to get rid of all traders when the market needs them? I am so pissed I can't think straight. ANY Comments?
But let's face it... the market is not fair. Somebody on this board mentioned starting a day trading lobby. Why do you think everybody is scared of cutting the social security? AARP and their constituency. How did the pattern day trader rule get put in? The exchanges and institutional market makers. If electronic traders organize into something like a professional organization, it will be harder to screw us and it will make the economy more efficient. Daytraders provide liquidity and depth to the market. We make the markets better and that's good for everybody. Unless more people know about the valuable service we provide, then we'll get killed slowly. First the uptick rule. Now the Soes fees. There's also a proposal to prevent options daytrading. It will not end until the major players get their monopoly back.
http://www.nasdaqtrader.com/trader/news/2001/headtraderalerts/hta2001-153.stm http://www.nasdaqtrader.com/trader/news/2001/headtraderalerts/hta2001-157.stm Pricing Plan, Phase I Nasdaq's new pricing plan will be implemented in phases. The first phase will be effective on October 1, 2001, and will consist of the following changes: New SuperSoes pricing: Order entry charge: $0.10 Order execution charge: $0.001 per share Cancellation fee: $0.25 per cancellation* Updated SelectNet® pricing: Order entry charge: $0.10 Order execution charge (liability orders, in 4 tiers): first 25,000/month: $0.90 next 25,000/month: $0.60 next 200,000/month: $0.10 all remaining/month: free Order execution charge (non-liability orders): $0.90 Cancellation fee: $0.25 per cancellation* *Note: cancellation charges are unchanged Full Pricing Plan, Phase II The full pricing plan will be phased in later in the fourth quarter 2001. It will include the following elements: a rebate for liquidity providers; market data revenue sharing; a nominal quote update fee; and price changes for SuperSoes and SelectNet. Specific details of Phase II are still being calibrated; Nasdaq will release the full pricing plan as such details become available.
Just switch to NYSE. At least they're honest and upfront about it and admit that they're trying to screw you. I've learned to deal with it and not mind honestly. I pay .5c a share that I trade. This ends up being 10-25k a month that I pay directly to the NYSE specialists for the "honor" of trading with them. I still don't mind it that much. Basically, the big guys fund the SEC, and we are seen by all as their enemy. Be thankful for the few advantages that we've been given recently. I think that decimals were the greatest thing to happen to the market since mayday a quarter century ago. The new prices for otc trading aren't all that serious. In the few occasions that I use NASDAQ, I almost exclusively use ecn's. SS is still significantly cheaper than an ecn except island. The only main complaint that I have with the NASDAQ is that they allow mm's to hide behind 100 shares of some obscure ecn while showing 10k size, and by the time I hit that ecn, they've pulled and I can't ss them. I've seen this dozens of time. It's an automated thing where if I take their 100 shares, their quote disappears. Maybe this will indeed have their unintended (but alluded to) effect of adding additional liquidity to the market. The only nas I trade often only trades 300k or so a day, and those 20c spreads and 1k max quotes are frustrating. I'd gladly pay up for the ability to see 5k back a quarter point from the inside and be able to hit it if I choose.
I'd be interested in knowing if IB's commissions will be affected at all by this, as their commission structure has been .01 per share, which has included any ECN fees and SEC sales proceeds. Def?
You have to be kidding me. IB commissions are 1 cent per share and that INCLUDES all pass thrus? I find that hard to believe as many DAT brokers charge .007 cents for ARCA pass thrus, etc. That would leave .003 cents per share for IB?!
I certainly hope that IB can continue to give the 1c/share (actually it is less when you trade large lots +1000) it goes to $0.0075/share. They just recently reduced their commissions! Which other broker has done that? They can do this because of one thing...volume! These charges will simply add to the stampede to ECN's and other alternative trading platforms.
hey guess what as relatively small individuals we cannot do anything about the fact that the big players control the markets. this will always happen. guess where the whole pattern day trader thing started and ended - in the senate, that "millionaires club" who is not in our pockets, but in the pockets of GSCO et al. who want us to disappear so they can better screw the public. and do you really think the SEC has any power over the big players? come on.... what can we do about it? forget about writing your senator or congressman - unless you have $10 million to dangle in front of them. instead, why not support firms who in theory AND practice make it more difficult for the exchanges to screw americans, such as Island. i personally will not trade NYSE or use supersoes because i'm not giving some uneducated imbecile, like a specialist or market maker a slice of my pie. it's really amusing that the NYSE technology is so pathetic that you can't be guaranteed a fill in under 2minutes (a relic from the old days when the specialist had 2min to haul his fat ass back to his booth and fill your order), AND that they REFUSE to move to a consolidated quote system where ECN's get represented on the book. wouldn't it be nice some day if markets were totally transparent and you could trade directly with whoever the f*ck you want to trade with??? patronize a firm like island, because they're the only ones who have actually DONE something about this problem. for a good rational rebuttal of the new "pattern day trader" margin rules, check out datek's (who owns island) letter to the sec at http://www.sec.gov/rules/sro/nd0003/nicoll1.htm the public doesn't understand what day trading actually entails - they think of us as fat, cigarette smoking lunatics whose every other word is f*ck, so don't try and get any support from them, or their elected officials. if you want to form some sort of lobby for day traders, or "non-institutional market makers" i'd suggest you start with Island. they have the cash, the clout, and would benefit the most from day traders having our own lobby. write them a letter professing your love, and how nice it would be if they were to start a lobby for us. i'd pay membership dues for that.