Market Makers and Soes Bandits are competitors in the same game. Each of them is trying their best to take money out of the pocket of the other. There is little doubt about that. Yet, Sajjad, where I must vehemently disagree with you is on the point of advantage/disadvantage. SOES Bandits have the advantage over all Market Makers and especially over the individual trader/investor. SOES is an instantaneous and electronic execution that neither the Market Maker or individual is capable of. Remember when you speak of SOES Bandits that they are stealing prints that you might very well deserve, and while Bandits and MMs are playing their games we are the ones caught in the middle. What ever has been said negatively of MMs you must remember that while they are trying to profit they are also providing a service. Without them, at this point, the NASDAQ market ceases to exist and everyone loses. If you take enough profit out of their end what are we left with. We're left with a relatively illiquid, volitile, and orderless market where the small cap issues that spawned the technology you see today can no longer find a listing. While that is certainly the extreme it is something to consider. Remember, also, that SOES Bandits are servicing no one but themselves, usually at the expense of you and I solely because they have an electronic advantage - not because they are better traders. I will not deny the fact that, for years, market makers profited extraordinarily in a relatively unregulated environment. That environment has, for the most part, changed to our advantage and will continue to do so as the regulatory bodies keep a close watch, but don't credit the SOES Bandits or take their side. They certainly would not take yours.
Regarding the market as a whole - we should be careful what we wish for, because we might just get it. |
