Paul

About Paul Rowady

Paul Rowady is the Director of Research for Alphacution Research Conservatory, a research and strategic advisory platform uniquely focused on modeling and benchmarking the impacts of technology on global financial markets and the businesses of trading, asset management and banking. He is a 30-year veteran of the proprietary, quantitative and derivatives trading arenas. Contact: feedback@alphacution.com; Follow: @alphacution.

Playback Thursday: Alphacution Participates in DTCC Active Management Event

For those interested in a discussion about the "Robinhood Effect," the "retail flow factor," and other timely topics related to a deranged and deranging stock market, a playback of the June 10th DTCC event, "Active Management and the Critical Role of Data," can be accessed herein...

By |2021-06-17T00:11:07-04:00June 16th, 2021|Open, Video|

Alphacution Press: Money Magazine on Upcoming Robinhood IPO

Mallika Mitra is a reporter at Money, covering investing trends, retirement, and debt. Her recent article, "Robinhood IPO: What to Know Before Investing," was published on June 2, 2021 based, in part, on Alphacution's ongoing analysis of Robinhood, its business model, and its impacts on the broader capital markets ecosystem.

By |2021-06-09T22:07:50-04:00June 3rd, 2021|Press|

The Retail Flow Factor: Hiding in Plain Sight

In this introduction to the 17-page, 21-exhibit presentation – Part III of Alphacution’s case study on payment for order flow (PFOF) – we present our preliminary development of the “retail flow factor” for 2020 based largely on a reconciliation of 606 data (from 10 retail brokers / 11 entities) and 605 data (from 7 wholesale market makers). The results include estimated monthly penetration of retail order flow relative to the full U.S. cash equities market for 2020 – including estimated breakdowns of odd lots and round lots – as well as some hints on where we will need to look next to further refine this factor in preparation for extending this analysis throughout 2021 and beyond…

By |2021-06-03T01:03:27-04:00June 3rd, 2021|For Subscribers|

Alphacution Publishes Payment For Order Flow 2020 – Part II: Broker Personas

In Part I of Alphacution’s case study on payment for order flow (PFOF), we focused mainly on the rates paid by wholesale market makers to retail brokers under a full range of securities categories and order type scenarios. In this 22-page, 20-exhibit deck, Alphacution presents PART II of its upcoming comprehensive case study, The Robinhood Effect, with a focus on a concept called broker personas. Alphacution’s working hypothesis on this topic is that each retail broker – in fact, all order flow intermediaries – have a unique persona. This persona – a unique pattern formed by order type distributions – is a distillation of client trading behaviors. In this presentation, Alphacution demonstrates that broker personas are partly due to investor demographics and, more interestingly, partly due to broker influence. Furthermore, when we broaden our perspective to consider that retail brokers are now compensated for trade flows largely by their wholesaler counterparts, we see a clearer picture of how desired outcomes could be manufactured…

By |2021-05-14T22:20:44-04:00May 14th, 2021|Open|