SEC report on options market structure

Discussion in 'Options' started by ajacobson, Oct 18, 2021.

  1. ajacobson

    ajacobson

    Their working group report
     
    TooEffingOld and DarthSidious like this.
  2. Cabin111

    Cabin111

    Just skimmed the first part...This might be why Schwab's stock is so high.

    Though retail broker-dealers have reduced commissions, some have maintained or
    increased other sources of revenue, such as: (1) payment for order flow; (2) advisory services or
    managed accounts from broker-dealers that are dually registered as investment advisers or from
    affiliated investment advisers; (3) interest earned on margin loans and cash deposits; (4) income
    generated from securities lending; and (5) fees from additional services. Recent Commission
    enforcement actions have highlighted some of the conflicts faced by broker-dealers.28
    Some broker-dealers report that younger investors and smaller accounts have been
    notable sources of new account openings. For example, Charles Schwab indicated that
    individual investor customers age 40 and below, with account balances below $100,000, are
    driving a greater percentage of trading volume than in prior periods.29Robinhood reported that
    its average customer is 31 years old and has a median account balance of $240.30