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strongvigilance

70 karma · joined January 9, 2013

Financial Trader. Not high frequency.
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strongvigilance··on SEC Rethinks the Penny Tick in Stock Trading
It's a story which gets pushed pretty hard by the more old-fashioned market makers, who are now getting out-competed by HFT/automated trading. Higher minimum tick is good for them as they earn money from the bid/ask spread, which necessarily has to be wider.
strongvigilance··on SEC Rethinks the Penny Tick in Stock Trading
It contributes to liquidity in that it allows market makers to quote tighter prices, since they have less risk of adverse selection.
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