September 21, 2018
This removal of fees will still do little to attract order flow back to the exchanges. If rebates of fees were the issue, we would see the inverted exchanges raking in the flow. Thats not the case. Orders are only placed in hopes they find the buyers and sellers. If the the SEC wants more price transparency and liquidity(displayed), they need to impose the trade at rule and prohibit the practice of pay for flow. these same traders that the exchanges say would leave in the absence of a rebate, would be just as happy if the exchanges all went away and died. You are all looking at this the wrong way. You need to get the flows back to the exchanges by eliminating the middleman from capturing the flows and internalizing or routing to where it advantages THEMSELVES. If you really want an extreme answer, have an exchange pay a 60 mil rebate to the taker, and charge 65 to the maker. It has to surpass the point where large firms are willing to pay for flow. Its just about the $$ incentives. Please wake up and make the trade at rule real. No need for a pilot there. It just makes sense and eliminates a lot on unneeded intermediation.