Exposing The Robinhood Scam: Here's How Much Citadel Paid To Robinhood To Buy Your Orders
... Which brings us to a totally separate topic, and one which Tenev will one way or another have to address: the fact that Robinhood is a de facto subsidiary of Citadel, whose entire business model is to sell retail orders to a handful of HFT market makers first and foremost... Citadel. In doing so the only ones who benefited from the surge in retail trading are Robinhood itself, by pocketing millions more from selling orderflow to Citadel, Virtu, Two Sigma, Wolverine and other HFT frontrunning "market-making" venues, as well as Citadel which made billions by having an advance look at the biggest surge in retail stock and option orders flow in history, and being able to trade ahead of and around it.
Market Data Fees and consolidated tape
FSUG open letter (PDF)
SMSG advice ESMA on its Consultation Paper on Guidelines on the MiFID II/ MiFIR Obligations on Market Data
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Pricing of Market Data
Presentation by Kerstin Hermansson - View Presentation
ESMA launches consultation on cost of market data and consolidated tape - esma.europa.eu
The European Securities and Markets Authority (ESMA), the EU securities markets’ regulator, has launched a public consultation on the development in prices for pre- and post-trade data and on the post-trade consolidated tape (CT) for equity instruments. MiFID II/MiFIR aims at ensuring fair access to and lowering the cost of market data and has established the legal framework for the provision of a CT. However, to date, no CT has emerged and, based on ESMA’s analysis, it appears that MiFID II has so far not delivered on its objective to lower the prices of market data.
Read the article from The European Securities and Markets Authority (ESMA)
Traders Want to Know What Exchanges Earn From Market Data
Banks, asset managers ask SEC to regulate exchanges’ market-data feeds. A group of 24 firms say the SEC should impose a rule forcing exchanges to reveal their profit margin for market-data products, as well as the number of clients that buy them.
Read the article from The wall street journal
LSE Postpones Introduction of Delayed Data Fees
The London Stock Exchange Group has backtracked on changes to its real-time market data agreements that would have seen the group begin charging fees for delayed data, following push-back from its data clients.
Read the article from WatersTechnology
The Dirty Little Secret of Finance: Asymmetric Information
There’s a very deep, important concept in economics that gets way too little attention from the public (and possibly from economists themselves). This is the idea of asymmetric information. The concept has been around for decades, and research about it has won Nobel prizes, but neither the profession nor the public has ever put it at the center of our understanding of markets. That should change. When today we debate issues like financial regulation or high frequency trading, it helps to think about financial markets as being driven by differences in how much people know.
Read the article from Bloomberg
Trade bodies urge Commission to review MiFID II exchange data rules
Several trade associations have called for the European Commission to review rules on market data pricing for trading venues under MiFID II. A MiFID II implementation roundtable - hosted by the UK’s Financial Conduct Authority (FCA) in May this year – saw questions raised about trading venues pricing market data on a “reasonable commercial basis.”