Where can I read this
The flow on the market becomes much more toxic after the uninformed retail flow is siphoned away.
Not by definition. If that uninformed flow is going to market, there is a good market design to encourage price competition among MMs who fight each other for time and price priority. That mechanism is obstructed under…
The NBBO would be narrower without wholesale market makers.
What they ignore is that the NBBO spread is made larger by this practice. By siphoning off all the uninformed flow, leaving only the toxic flow, this then causes people to quote wide spreads on regular exchanges, making…
Where can I read this
The flow on the market becomes much more toxic after the uninformed retail flow is siphoned away.
Not by definition. If that uninformed flow is going to market, there is a good market design to encourage price competition among MMs who fight each other for time and price priority. That mechanism is obstructed under…
The NBBO would be narrower without wholesale market makers.
What they ignore is that the NBBO spread is made larger by this practice. By siphoning off all the uninformed flow, leaving only the toxic flow, this then causes people to quote wide spreads on regular exchanges, making…