Sticking it to the Little Guy, Again

creepycoug

Congress is asking questions about whether middlemen or "market makers" like Citadel that execute stock trades really give small investors the best prices.

https://www.nbcnews.com/business/personal-finance/trading-hot-stocks-gamestop-seems-fun-until-you-look-beneath-n1258147

doogie

We should really have a Government Board of Fair Pricing that will establish the proper price of securities keeping risks to a minimum.

creepycoug

doogie said:

We should really have a Government Board of Fair Pricing that will establish the proper price of securities keeping risks to a minimum.

No. Just better transparency so that end users understand what they're getting so they can adequately compare trading platform alternatives. Transparency will help increase competition on a key measure - transactions cost.

In December, Robinhood paid $65 million to settle an SEC enforcement action for not disclosing how much money it was receiving for routing its orders to firms like Citadel and for failing to seek the best price for its customers' orders. Robinhood neither admitted nor denied the allegations.

"Due in large part to its unusually high payment for order flow rates," the SEC said in announcing the settlement, "Robinhood customers' orders were executed at prices that were inferior to other brokers' prices." This failure deprived its clients of $34.1 million, the SEC said.

I suppose they can always just execute limit orders.

Sources

creepycoug said:

doogie said:

We should really have a Government Board of Fair Pricing that will establish the proper price of securities keeping risks to a minimum.

No. Just better transparency so that end users understand what they're getting so they can adequately compare trading platform alternatives. Transparency will help increase competition on a key measure - transactions cost.

In December, Robinhood paid $65 million to settle an SEC enforcement action for not disclosing how much money it was receiving for routing its orders to firms like Citadel and for failing to seek the best price for its customers' orders. Robinhood neither admitted nor denied the allegations.

"Due in large part to its unusually high payment for order flow rates," the SEC said in announcing the settlement, "Robinhood customers' orders were executed at prices that were inferior to other brokers' prices." This failure deprived its clients of $34.1 million, the SEC said.

I suppose they can always just execute limit orders.

That won't get filled at the limit...