TheBramble
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Somebody posted within the last few weeks either a link to an article or attached a pdf to a post regarding the changing dynamics of professional trading: particularly brokerages and banks.
It mentioned how the diminishing spreads (I think it was just talking about NASDAQ stocks) meant the MMs etc. were now moving the prime profit making strategies to pre-market action based on the order flow of their clients. Referred to as data mining. Basically, they have advance knowledge of order flow from the clients (obviously) and are therefore in a position to setup 'conditions' prior to the off, which benefit their bottom-line. Although this is necessarily at the expense of their clients' bottom-line, it is apparently (for the moment) a legal move.
Very interesting article but I can't locate it with normal site search facilities.
If anyone can remember and point me in the right direction, I'd really appreciate it.
It mentioned how the diminishing spreads (I think it was just talking about NASDAQ stocks) meant the MMs etc. were now moving the prime profit making strategies to pre-market action based on the order flow of their clients. Referred to as data mining. Basically, they have advance knowledge of order flow from the clients (obviously) and are therefore in a position to setup 'conditions' prior to the off, which benefit their bottom-line. Although this is necessarily at the expense of their clients' bottom-line, it is apparently (for the moment) a legal move.
Very interesting article but I can't locate it with normal site search facilities.
If anyone can remember and point me in the right direction, I'd really appreciate it.
