Market Making Unveiled: Insights Post GameStop

This chapter explores the complexities of market structure, specifically focusing on payment for order flow and high-frequency trading in the wake of the GameStop trading episode. It aims to clarify misconceptions around these practices and the role of market makers like Citadel, while also discussing the technological advancements that have shaped modern trading. Personal anecdotes and discussions about liquidity provision and the impact of alternative trading systems further enrich the narrative, providing a comprehensive view of the operational dynamics within the U.S. equities market.