Jul. 1 at 6:14 PM
In 4Q24, US exchanges' share of trading fell below 50% for the 1st time, w/ market makers handling the rest
A sub of Imperative Ex, IntelligentCross is asking the SEC to let it set national stock prices, like an exchange does. Instead of running dark, IntelligentCross prices would become part of marketwide quotes - SEC rules would oblige brokers to send it their orders if it has the best prices
Market maker Citadel Securities opposes the change.
$NDAQ earns an op margin of 57% on
$5B in revs. Market maker
$VIRT is expected to earn a 58% margin on
$1.8B in revs this year
Should the SEC grant the request, additional flow might come at the expense of stock exchanges & market-makers
Dark Pools get some of their liquidity from market makers, but mostly they match the order flows of institutional customers
On an exchange, much of the liquidity comes from market-makers, w/ the exchange displaying the prices at which they will buy or sell & execute at best price
