Sal Arnuk and Joseph Saluzzi, Busted Avenues: Exactly how High-frequency Trade and Predatory Practices to your Wall Path Are Destroying Investor Believe along with your Portfolio, 219 (2012).

Thomas Peterffy, Chairman and you can Chief executive officer of Interactive Brokers Group, Comments Before the 2010 Standard Installation of the world Federation off Transfers, step 1 (), offered by

Michael Lewis, Flash Guys, forty (2014); find in addition to Maximum Ehrenfreund, An experienced designer shows you how the stock )(quoting Eric Scott Hunsader, maker out-of Nanex, while the stating “[s]o when Michael Lewis used the word ‘rigged,’ he or she is right. [The stock market try] rigged . . . .”), offered at

Thomas Peterffy, President and Chief executive officer out-of Entertaining Agents Classification, Comments Until the 2010 Standard Assembly around the world Federation out-of Exchanges, 2 (), offered by

Charles Schwab and you will Walt Bettinger, Schwab Declaration to your High-Frequency Trading (), offered at but pick Kathleen Pender, Charles Schwab Chief executive officer describes large-frequency trade lso are) (noting that Walt Bettinger, Ceo out-of Charles Schwab, afterwards said that “practical some one produces voice objections to the either side of facts around large-frequency change.”), available at

BlackRock, United states Equity ) (listing you to, “when you’re investors has actually benefitted away from [regulations such as for example Reg NMS], it is very crucial that you recognize that such laws and regulations keeps fostered an intricate and you may highly fragmented field in which trade order flow need navigate thirteen transfers, 40+ ebony pools, and you will a number of Digital Communications Networks (ECNs). . . . , [t]the guy ability to place purchases in most locations will come within an excellent cost . . . .”), offered at

S. Equities Industry Slammed into the SEC Panels, BloombergBusiness ()(estimating Matt Schrecengost, captain working manager at Dive Change LLC, a proprietary trade enterprise within the Chicago, due to the fact claiming “[t]the guy You.S. equities market is thus advanced generally if you add from inside the a position for example [the latest May six thumb crash] the newest complexity turns into confusion”), available at

Nina Mehta, Fragmentation from You

“The expression ‘ebony pools’ basically refers to electronic stock trading programs where pre-trading offers and offers aren’t had written and you can rates information regarding the latest exchange is only made social after the exchange could have been executed.” Gary Less and you can Rena S.

“Agents taste orders once they route their clients’ marketable purchases so you can investors in exchange for individuals monetary and you will nonpecuniary costs for order flow.” Larry Harris, Exchange and Transfers: ).

“Once you set your order buying or offer a stock, the representative has options on locations to carry out the order. In the place of navigation your order so you’re able to a market otherwise business-suppliers to possess performance, your own broker will get complete your order on the company’s very own catalog. This is exactly titled ‘internalization.'” U.S. Ties and you will Exchange Payment, Timely Responses, offered by

Select, age.grams., Daniel Weaver, The fresh Trade-From the Signal, Internalization, and you may )(searching for “strong help towards lifetime from a negative matchmaking between the level of internalization and you may business top quality,” and you can finishing that “investors [are] purchasing $step three,890,624 significantly more each stock a year because of internalization.”), offered by

Offer Log, NYSE Chief executive officer: Knight Money One more reason to own Change ()(talking regarding wake of one’s Knight Capital debacle), offered by

Under the originator-taker cost design, new traders whose commands “make” otherwise give exchangeability to a trading and investing venue by publish brand new estimates otherwise even offers located a discount, whereas traders just who “take” otherwise clean out liquidity from the hitting a current bid otherwise lifting an enthusiastic established offer spend a take fee . Pick Stanislav Dolgopolov, The producer-Taker Rates Model and its Effect on Securities Sector Construction, 8 Va. L. Shuttle. Rev. 234-thirty-five (), available at

“In an effort to interest purchases off brokers, certain transfers or markets-companies pays the broker’s enterprise to possess routing your order in order to him or her . . . . This can be titled ‘commission to have acquisition circulate.'” U.S. Securities and you can Exchange Fee, Prompt Responses, offered at