In a new white paper, Larry Tabb, namesake and CEO of the Tabb Group, dives into the payment for order flow issue and draws a nuanced conclusion. While payment for order flow may create distortions, and even “artificial ripples” in the price discovery, sending orders to buy and sell stock to venues that may not have the best execution history, upsetting the standard quo may bring unintended consequences as well.
Larry Tabb notes ICE derivatives CEO wanted payment for order flow banned
In the white paper titled “Rebates and Market Distortions: The Cost of Liquidity?” Tabb Group, a capital markets research and Wall Street market structure analysis, notes that Jeffrey Sprecher, CEO of the ICE derivatives exchange, which recently purchased the NYSE...
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