Thread by @live2beingu

#AMC #GME #TSLA #OCGN #STONKS #MOONING Part 2 "Stepping into the Light" Okay Well the IEX uses a crumbling quote Indicator. The indicators’ main purpose is to predict whether the incoming quote is going to increase or decrease. Is the incoming quote stable enough to not change

the market. If it’s not then the IEX system will prevent what’s called a DPEG or PPEG orders on what side (buy/sell) from exercising discretion and trading that is more aggressive to the resting prices. Said simply, when block orders come into the system seeking to alter the

price point up or down. The price will not be higher than resting price already within the system. Lets talk definitions:
DPEG: Discretionary Peg are pegged to one minimum variation or “tick” below the national best bid, in the case

of buy orders, or one tick above the national best offer in the case of sell orders.
PPEG: Primary Peg are pegged to one tick below the NBB for a buy order and one tick above the NBO, however it differs from the above in that it can trade at a price up to

the NBB or down to the NBO unless restricted by orders limit. Okay I get it KT, they are trying to be able to have an exchange that won’t hurt large block orders and sweeps as they come through thus altering the price point. Got it. How does that affect the ATS?

The ATS purpose is to protect large block orders off exchange from shifting the price point too high or too low. The exchange looking to be added would allow large block orders to have the same impact however, these orders would be made available to the public instead of hidden

from view. We would have the power to see who is trading what and how much. This would effectively put to an end the central focus of the ATS (Dark pools) because they'd no longer need to hid in order to protect block order flow. Thereby creating a protection mechanism.

Okay what's up with the D-limit order then.
Let’s talk definitions again before I tell you how it is applicable.
-D-Limit order type: is a discretionary order type that uses artificial intelligence to protect retail investors from latency arbitrages (aka high frequency

trading techniques) as well as large order being posted off exchange.
Hopefully that’ll make sense as I go along here. D-Limit order types protect orders during moments of high frequency trading when they are the most aggressive on the market. (Shorting of the market faster

that you can say WTH). More importantly, it will allow companies to benefit from an increased supply of liquidity from a more diverse group of participants and attract a more stable liquidity that is not driven by sub-millisecond price moves. Most importantly, the intent is

not to ensure the trades are profitable but to ensure that they promote fairness and equality in the market. Furthermore, it would eliminate the PFOF because all initial orders would be routed to IEX and then routed to the MM, HF, and Exchanges.

In short it means that it is trying to make it so that 1) market is now a fair and free place to trade that benefits all and not just a select few that use algos to defeat investors and retail 2) Bring large orders from the off the exchange markets and not allow them to alter

or change the price just because it’s a large order. Really focusing in on why dark pools actually exist. If the primary purpose was to not allow the market to be easily shifted by large block orders this order type would bring this to the forefront and not

allow for the market to be easily shifted based on what the order flow its. Finally, it would prevent the select few from being able to use the paid for order flow concept and get in front of retail and other investors as all of the information would be made available

to all traders and the orders sent would be executed on time instead of having to wait to be processed next in line after Citadel or any other MM put their bid in first. Okay perhaps I’ll put it this way, IEX number one goal is to make the market as fair as it possibly can

between short and long term investors. The IEX is going to allow all traders big and small to use the D-Limit orders to protect their limited orders from HFT and block orders from Dark Pools. I’m making the inference here because that is what it is looking to imply.

Here is why It will encourage more types of market participants to post more displayed liquidity on the exchange and contribute to price discovery and displayed depth. Essentially, no more hiding out in the Dark Pools bring everybody and everything out into the light at this

point. Why is Citadel and "friends" so upset at this point and fighting it? Citadel is fighting it as it does want the IEX to exists. The IEX would basically take over 50% of the trading on behalf of retail investors…that because it typically enters into the back-to-back

transactions. Found in the details of the SR the commission says and I quote “the Commission understands that the commenter is not directly routing the customer’s order to exchanges, but rather is, buying shares for its own account and selling shares to the customer.

Citadel leaves out that retail orders are likely sent at random times and that given control Citadel likely will choose to route these orders to IEX during a CQI condition. During that time Citadel has a free option to hold the order and decide what to do with it as they are

not waiting for a better price for retail to show up but ware waiting on to make as much money for Citadel as possible.” Citadel and friends know that if the IEX and the D-limit order is passed their entire business model will crumble as they will be forced to

essentially execute all immediately rather than wait for what would benefit them as a MM within the Market. Additionally, they also know that the off-exchange order activity would now be routed through the IEX to be executed properly at price points that

wouldn’t drastically move the market in a certain way.The SEC is literally trying to route all orders through this exchange first prior to our three exchanges in the U.S. and the 50+ dark pools that exists. The SEC is trying to make it a free marketplace for all but is

being fought tooth and nail by the vultures of MM whose role in this was originally to be a middleman of sorts i.e., receiving orders from brokers and executing them in good faith. This court case would set the precedent for years to come as it would shed much needed

light on the dark paths and intentions set in force by Market Participants whose goal is to negatively impact long and short-term investors. Part 3 on the way. It won't be a long tweet. After that I'll cover the SR-NSCC-2021-806 rule. @threadreaderapp #stonks #wallstreetbets

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