elecengin
Joined 18 years ago
Joined 18 years ago
Apologies if you already considered this, but make sure you consider execution costs. Depending on your type of strategy and selection of stocks, it may be a major determinant of the success or failure of the strategy.
https://www.bloomberg.com/view/articles/2017-08-25/insider-t...
There are similar regulations in NYC (and I think most of the US, although it is at a local level) that mandate customer bathrooms although they do not sound as strict. For example, small coffee shops (less than ~15 seats) frequently have no customer bathrooms.
Cutting the start up costs increase the range of profitable business opportunities.
My favorite question: "How long is the contract for?" (the SEC reps look to each other, and then respond...)
"There is no term."
"And the bidder is committed to storing all generated data?"
"Yes."
An article on the trend: http://qz.com/355848/wall-street-is-hogging-the-peer-to-peer...
"According to Ericksen, the ability for EMV transactions to continue as usual without the card remaining dipped after the creation of the cryptogram is actually already an existing EMV process, but it is just not widely used. With the implementation of Quick Chip, no additional testing or certification is needed from a Visa or EMVCo point of view, there are no changes to the process and the technology is inherently EMV compliant."
http://www.pymnts.com/news/emv/2016/visa-puts-the-quick-into...
Worth shouting out to Lucera - I have met the CEO and he is a really thoughtful technologist. They are doing some awesome work bringing AWS-style computing to the low latency space. Some interesting details on their deployment: http://www.enterprisetech.com/2014/02/20/amazon-cant-catch-l...
You could argue that these are direct competitors of IEX and therefore have a vested interest in preventing the new exchange - or you could argue they are best suited to see the holes in the application.
Keep in mind that previous exchange applications have went through without this level of discussion. You could argue that this is because the other exchanges are "scared" of IEX. Or... consider the possibility that IEX's application has some faults. For example, much of the focus has been on IEX's smart order router not following the same rules as all the other exchange participants. The argument is too nuanced to summarize here... but you should never decide an argument based on number of responses!
The SEC seems to enjoy "experiments" - the large tick pilot (testing variations on requiring some small cap stocks to trade in increments larger than a penny) is an example of a massive upcoming one. While the large tick pilot suffers from many things - a huge cost to brokers for a dubiously structured experiment - at least it shows a willingness for the SEC to attempt structured experiments. This should be no different.
P.S. For those interested in Sweden - a report considering a transaction tax in Canada that discusses it: http://www.publications.gc.ca/collections/Collection-R/LoPBd...
The answer varies for small and large orders (and even by share price) For most retail investors that use something like Robinhood, the average order size is small so a flat $5 fee would be way worse.