"Paying for Liquidity"

Discussion in 'Order Execution' started by chasinfla, May 29, 2002.

  1. ECN's are paying brokers who in turn pay traders to execute. Where's the money coming from?
  2. Removing liquidity from an ECN is paid for by the trader to the ECN,where then the ECN gives some of that to the trader that is adding liquidity.For example,to remove liquidity from ISLD,you pay .0019 per share.When you add liquidity,you get .0011 per share.
  3. thx
  4. ISLD Island $0.0019,
    Island charges for taking away liquidity
    this means hitting a bid or an offer
    -$0.0011 for adding liquidity!!!
    and gives this for placing bids/offers slightly outside the market.

    INCA Instinet $0.0030,

    Charges this for taking away liquidity

    -$0.0020 for adding liquidity

    but when you add liquidity they pay you this.

    If you are a trader that places bids/offers slightly outside market waiting to get hit this helps lower your overall cost.

  5. thnks.
  6. Do the Tradescape guys get rebates for LSPD and if they do how much and do any other firms rebate LSPD?
  7. F1Trader


    I sometimes strictly trade on rebates, and believe me the rebates could amass a couple of thousand dollars in a day. Apply that to very low if any commission and you have an extremely profitable day/month/year.
  8. I agree. When there is a stable, per share broker (charging .01/share or less) who will rebate for liquidity, they will clean up. Hint, hint IB.
  9. So F1, are you just liquidty trading?

    I was approached to do this yesterday and have a few questions.
  10. ever get yr questioned answered?

    Inquiring minds would like to know...

    #10     Jun 21, 2002