Virtu CEO Doug Cifu Explains Payment for Order Flow and the Future of HFT
Odd Lots
00:00
Understanding Payment for Order Flow
This chapter explores the intricacies of payment for order flow, focusing on its significance for retail investors and the mechanics behind market makers like Virtu and Citadel. It addresses common misconceptions, particularly regarding market makers' informational advantages, and emphasizes how the trading dynamics shifted during events such as the GameStop trading frenzy. Additionally, the chapter contrasts retail and institutional trading practices, shedding light on execution quality and the technologies that optimize order routing.
Transcript
Play full episode
