In our initial observation of the Tick Size Pilot*, we found a shift in liquidity from off-exchange venues to exchanges in G3 and a shift from maker/taker to inverted exchanges across all test groups. However, we did not observe the same increase in impact costs that other studies found. We concluded that the pilot may be showing signs of improved liquidity capture for institutional investors and we committed to measure and report the results of the pilot in the future.
M-ELO, Nasdaq’s Midpoint Extended Life Order, is a new order type that is designed to attract longer term investors to interact with each other by trading against other M-ELO orders at the midpoint of the NBBO.
Three years ago a dear friend sent me a link to an article. “This sounds up your alley,” she said. It was about an initiative to get high school girls into programming. As a female software engineer who went through her computer science classes surrounded by men, I was intrigued.
Traders have always strived to attain high quality executions, but measuring execution quality is now more important than ever.
Clearpool hosted its first development team hackathon this month, bringing together our team of technologists for a day dedicated to coding, creativity and complex problem solving. A few days prior to the hackathon, members of our software development and quantitative analysis teams were paired up and the eight teams began brainstorming ideas. The requirements for each team’s “hack” were that it benefit the company in some way and that they take only one day to come up with their proposed solution.
The views of many broker-dealers are often underrepresented in the ongoing debate over market structure reform, but not understanding the impact that trading regulations may have on those broker-dealers can cause many unintended consequences.
In an environment where nearly all trading is done electronically, it’s important to consider the added benefits of human judgement and flexibility that floor brokers may offer.
In our recent comment letter to the SEC, we are in support of NASDAQ’s proposed new order type the Midpoint Extended Life Order, AKA MELO.