The wholesalers just can’t get their stories together. Their arguments shift ever 5 seconds and circular. Here are the top 10:
1. Retail brokers don’t get mid from exchanges because that would mean the rest of flow would be more toxic for wholesalers and they wont get the same price improvement
2. Retail brokers don’t get mid from exchanges because retail investors couldn’t care less for that price improvement of half a spread.
3. Retail investors should love the wholesalers because we give them .0005 price improvement.
4. They shouldn’t do it If they checked mid they will miss the NBBO.
Market should thank us for the retail exhaust we send (that we don’t want to internalize, our other market making partners say No to. No difference between retail and retail exhaust. )
6. We offer better spreads to retail because we can segment flow and the flow is not toxic.
7. If that flow went to exchanges there will be no reduction in spread!!
8. Tick Pilot PROVED IT! So what if the tick size was higher and so what we continued to internalize. The spreads went up! Same will happen if you tried to get the retail flow to move to exchanges.
9. It is perfect competition in wholesale market. We are fighting each other tooth and nail.
Virtu: We ❤️ Citadel.
10. We made billions of dollars last year wholesaling but we get our a** handed over to us making markets at exchanges.
11. We want debate. Data! Facts!! (Sorry I said Top 10)
12. (Once presented with it) You’re stupid for saying this! You’re trying to sell books. Did you ever take risk in your life!! You don’t know how markets work!!! You must hate us!!!!
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