Why Trade Reporting Facility volumes proxy retail volumes?

Discussion in 'Trading' started by blueraincap, Feb 5, 2021.

  1. If I understand correctly Trade Reporting Facility (TRF) volumes represent off-exchange (=ECN) volumes. Why is it said that TRF volumes can proxy retail trading volumes?

    I see that retail brokerages send much of their order flow to market makers, who can execute off-exchange and report the trade to the TRF, but it is not like non-retail flows all go to exchanges and retails can't go to exchanges. How can you dissect, if possible, the flow breakdown within TRF volumes, say by classification or ticket size.
     
    Last edited: Feb 5, 2021
  2. qlai

    qlai

    Source?