Even Manoj Narang conceded that he noticed the same thing as Brad Katsuyama around the same time: lower fill rates. The lower fill rates only led to scratching of heads. It was the underlying cause of lower fill rates which led outrage (in Brad's case).
The underlying cause is the "perverse incentive" (Lewis's words) of the taker-rebate (reverse of the usual maker-rebate taker-fee). Is there a sensible reason to such a fee structure? Or is it just useful for HFT firms to bait orders and get an informational edge they can exploit against mom & pop's retirement fund?
The same should be asked about esoteric order types (Hide-n-Slide, Post-only, etc). Its cleary a complex landscape with middle ground, but it would be surprising if there weren't cabals and conspiracies hiding in obscure corners.
The underlying cause is the "perverse incentive" (Lewis's words) of the taker-rebate (reverse of the usual maker-rebate taker-fee). Is there a sensible reason to such a fee structure? Or is it just useful for HFT firms to bait orders and get an informational edge they can exploit against mom & pop's retirement fund?
The same should be asked about esoteric order types (Hide-n-Slide, Post-only, etc). Its cleary a complex landscape with middle ground, but it would be surprising if there weren't cabals and conspiracies hiding in obscure corners.