It appears that Schwab has completed its consolidation and integration of TD Ameritrade. Now this giant is going head to head with Robinhood for leadership in retail brokerage - and all while leaving just about all other competitors in the dust...
With a suite of 14 new charts, Alphacution presents an updated review of and key highlights for retail equity option trading - including overall market share, market share by broker, and market share by wholesale market maker - updated through June 2024...
Alphacution falls on its sword to admit errors in attribution of equity index option activity to Robinhood - and offers an explanation for why occasional mistakes like these are a necessary evil of our research process...
With latest data in hand, Alphacution shows that the zero-day option (0DTE) phenomenon has contributed to long-term declines in aggregate payment for order flow (PFOF) levels thereby causing a ripple of subtle and not-so-subtle impacts in the market ecosystem...
Alphacution makes its case for where new market structure rules should, at the very least, be successful - as well as a clue for how our research influenced (and altered) Robinhood's business model...
Part II - Equity PFOF Volumes / Wholesaler Market Shares: Alphacution organizes and distills 33 months of payment for order flow (PFOF) data from 14 retail brokers and 13 wholesale market makers to place a wide-angle frame around the US Securities and Exchange Commission's upcoming proposals for a major equities market structure overhaul...
We've seen it coming for a long time. There were many clues along the way from which to anchor a prediction. Now, the evidence is too dramatic to ignore: UBS Securities is exiting the retail equity wholesale market making business. Alphacution rolls out its case, along with other key findings...
