The following are some issues I've pondered over the last 25 years.
I've queried the CFTC several times on this over the years but never received a response.
Curious as to what others may think.
When we went to all these computerized trading platforms, IMHO, we gave the vendors the keys
to the kingdom. Since most integrated platforms provide both a datafeed and the ability to take orders
and provide fills, all ones efforts are consolidated into a single entity. I used to split my datafeed
from my orders by using two separate firms. However I stopped when MFGlobal went south.
The issues I have are:
1) Vendors trading their own accounts which IMHO creates a conflict of interest between
themselves and their customers.
2) The ability of the vendor to see customer order flow and from that get a better idea as
what position to take for their own account(s).
3) The ability of the vendor to slow the datafeed to it customers, thereby limiting them to
get filled or get a good fill in a fast market. For example by the time the customer receives
its data and places the order the price is out of the customers trade window..
4) The ability of the vendor to glean proprietary trading indicators especially on those platforms
that allow self development.
5) The restricting (suggestion to use) of market orders in favor of limit, and if one uses market,
fills "may be" worse. Is there a way to determine whether this is a function of the vendor or the
market itself?
My2Cents
Edited by dwnowhere1, 13 August 2018 - 06:50 PM.