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Dave Lauer Profile picture
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28 Dec, 8 tweets, 2 min read
2022 will be a monumental year in market structure, w/big proposals coming from SEC on off-exchange trading and PFOF. Part of what we will do @UrvinTerminal is make sure that retail has a well-informed voice in this debate. Support our efforts here:
wefunder.com/urvinfinance/
@UrvinTerminal I believe in leveling the playing field - getting retail investors access to the same high quality data and tools that the professionals have.

I believe in truly democratizing information, data and access - not turning retail into a product to be sold to high-speed speculators.
I believe that you can align incentives so that everyone wins, while taking on the biggest and most powerful incumbents on Wall St.

I believe we can change the system when we work together, point out corruption, and build a movement so big, it can't be ignored!
I believe that business-as-usual in financial regulation needs to END.

Corporate concentration of power needs to END.

Incumbents charging undue rents and stifling competition needs to END.

I'm FIRED UP right now, and ready to take on the system.
The retail revolution on wall st has fired me up, the public caring about these issues has me excited, and I think that 2022 will be completely different than past efforts because of it! I'm excited at the support we've seen in our efforts, and I can't wait for next year!
ENOUGH IS ENOUGH! The era of special interests is ending. It won't be fast, and it won't be pretty, because they'll fight like hell for every penny of profit. But social media and decentralized tech will let us take them on, and in the end the rational, right side will win.
It's so easy to grow complacent and cynical, especially in light of the corruption and inequality of the last few decades. But instead we need to rise up and take them on, because we are on the right side, and we are fighting the good fight.
I'm thrilled for every single one of you who is following me, and helping to fight this fight with me. I can't wait to keep fighting it with you next year!

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More from @dlauer

Dave Lauer Profile picture
2 Nov
Ok, it’s time for some game theory. For real! Let’s talk about the conflicts-of-interest at the heart of nearly all equity routing today – rebates & payments. These inducements (that’s an important word) influence how brokers route orders, for retail and institutions.
First of all, for retail, I think everyone understands that PFOF involves market makers paying brokers to send retail orders to them. Most of the time these are marketable orders. Limit orders are often sent to exchanges.
For example, here is Fidelity’s order routing showing marketable orders going mostly to Citadel and Virtu, and non-marketable orders going to NYSE and Nasdaq. Non-marketable limit orders receive a rebate when they are sent to an exchange
Read 15 tweets
Dave Lauer Profile picture
26 Oct
Remember in February when Thomas Peterffy said:
"We have come dangerously close to the collapse of the entire system."

I just had a very stimulating discussion on the nature of systemic risk, market structure and leverage / shorting.

How is it even possible that GME could've brought something like this about?

Can you imagine if GME was responsible for the entire market grinding to a halt?
What's even crazier? Nothing has changed, 10 months later. We are 10 months after an event that could have brought the entire US market down, and nothing has changed. Nothing has been done. There is systemic risk in market structure that is not being addressed.
Read 11 tweets
Dave Lauer Profile picture
12 Oct
This is the story all the current internalizer apologists want you to believe - "retail has never had it better." They neglect to mention the costs this has imposed on pension plans and mutual funds, or that the measurement is flawed because of artificially wider spreads.
Segmenting retail order flow harms markets, and widens spreads. Then those who champion this segmentation measure so-called "price improvement" against a wider spread, and claim "retail has never had it better." It's disingenuous, & of course those making the argument know that.
But Virtu, Citadel and the retail brokers are simply making too much money so they're desperate to maintain the system. They will fight the SEC tooth and nail on this, in order to preserve their annual bonuses.
Read 4 tweets
Dave Lauer Profile picture
17 Sep
While this soundbite sounds good, it's not accurate. Using standard measures of market concentration, you can EASILY see that off-exchange trading is highly concentrated, and for large retail brokers it fits the DOJ definition for anti-trust enforcement.
The Herfindahl Index (HHI) is a standard measure of corporate concentration. Total OTC trading in July 2021 showed an index of nearly 2,000, but that doesn't tell the real story. Looking just at HOOD's 606, their HHI ranges from 2,500 (S&P 500) to over 3,000 for options.
This is the literal definition of corporate concentration, and it results in worse outcomes for everyone involved (except for the wholesalers and HOOD executives).
Read 5 tweets
Dave Lauer Profile picture
15 Sep
You know what's terrible and sad? Earlier this year, Facebook's head of AI @ylecun told me, absurdly, that Facebook's "AI" "filter[s] things like ... bullying." All while he knew this to be untrue.
@ylecun Instead of responding rashly on Twitter, I wrote an extensively researched piece exploring Facebook's issues, including issues around harassment and bullying for the Journal of AI and Ethics:
link.springer.com/article/10.100…
@ylecun Facebook's problems are not technology problems, as the WSJ article so clearly establishes. It's problems are that it is a deeply unethical organization from top to bottom, and its business model enforces and supports that.
Read 7 tweets
Dave Lauer Profile picture
3 Jun
This is absolutely the right take.

Something is rotten in these highly shorted names.

The more the general public learns about short selling abuses, short sale mismarking, FTDs and the complete lack of regulatory enforcement and oversight, the angrier they're getting.
There is an informed and fascinating discussion and level of research taking place in a decentralized way on social media. I don't think the SEC & FINRA have any understanding of the public disgust and upheaval, and if they think it'll eventually go away they're sorely mistaken.
This is building on the disgust of the bailouts and lack of criminal charges in the wake of the GFC. Now they're seeing companies being shorted and attacked, and retail investors are organizing and fighting back.
Read 5 tweets

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