075: Dan Aisen – The Mechanics of a Dark Pool, and a Quest to Make Markets “Fair” w/ IEX Co-Founder
Chat With Traders
00:00
E-Trade's Payment for Order Flow
The pricing model that's kind of evolved as the new norm on exchanges is that they pay market makers. E-Trade has arrangements with high frequency trading firms where those firms will pay them and E-Trade will send that firm all of its order flow or, you know, a subset of it. The thing that we do that's different from the other exchanges is that we don't offer maker taker pricing. And so we just see these complex pricing structures creating conflicts of interest for brokers who wind up hurting investors.
Transcript
Play full episode
