SEC set to propose rules that would squeeze stock-market middlemen
As someone who used to work in execution brokerage, this rule change seems on net to be good news for retail investors and bad only for folks like citadel and robinhood.[1]  In the wake of flash crash there was a fair amount of research suggesting that rolling auctions (rather than continuous order matching) are net positive for almost everyone except HFTs who exploit market microstructure.<p>In my view they should also get rid of reg NMS, which entrenches HfT arbs and gives a permanent advantage to people who pay to colocate at the exchanges. Europe has shown that reg NMS is not needed and doesn’t benefit investors.<p>[1] noone should be crying for robinhood. Their entire business model is about disadvantaging small investors to benefit themselves and Ken Griffin.