Are Broker Dealers Ready for FINRA to Analyze their Routing?

(a more detailed version of this commentary can be found in the ViableMkts Library:  http://www.viablemkts.com/viable-markets-library/  ) Finra recently informed all of its member brokers that it would be conducting a review of their order routing practices and decisions.   While I think that such an analysis is much overdue, it should cause a great deal of consternation … Continue reading Are Broker Dealers Ready for FINRA to Analyze their Routing?

Artificial Intelligence in Trading Crypto Assets Might Not Be So Smart…

There is an old expression in computer programming: “Garbage in, Garbage out.”  The point of the expression is that if you program logic based on bad data or data derived from the wrong context, that the results will not be what you are looking for.   In the world of trading cryptocurrencies, the data supplied to … Continue reading Artificial Intelligence in Trading Crypto Assets Might Not Be So Smart…

BitCoin Futures: Boogeyman or Rational Evolution?

Today’s Headlines virtually ooze sensationalism as they inform investors that BitCoin a.k.a. “The boogeyman” is coming, in the form of futures contracts on the CME.   The news coverage ranges from the reasonable from Business Insider and the Wall Street Journal  to the ludicrous from CNBC, who stokes investor fears by comparing approval of BitCoin Futures … Continue reading BitCoin Futures: Boogeyman or Rational Evolution?

The Not-So-Amazing IEX “Flea Circus” Continues…

This week, the President of a National Security Exchange falsely accused his competition based on previously disproven marketing claims packaged as “research.”   To be precise, the exact quote, as published was:  “The exchanges which provide the worst executions pay rebates to brokerage firms for orders. The incentive brings customers into the store but creates a … Continue reading The Not-So-Amazing IEX “Flea Circus” Continues…

IEX continues its self-promotion & anti-rebate rhetoric, despite data telling a different story

As I perused the Curatia news brief earlier this week, I was struck by seeing my article on exchange quote quality followed directly by an article that was essentially an IEX marketing piece.  It was a fascinating juxtaposition;  Readers first saw an article, that summarized billions of quote messages processed in August to show how … Continue reading IEX continues its self-promotion & anti-rebate rhetoric, despite data telling a different story

How Exchanges REALLY Compare: Introducing the ViableMkts Exchange Quality Score, Part 1: Quote Quality

There are significant differences between order book quality and trading characteristics among the nation’s stock exchanges.   Despite this, and the importance of understanding that quality for both investors and issuers, there has been no effort to create standardized metrics before now.  Instead, each exchange relies upon either marketing, direct sales, or the analysis of their … Continue reading How Exchanges REALLY Compare: Introducing the ViableMkts Exchange Quality Score, Part 1: Quote Quality