Posts by Paul Rowady

Information Waves and Timing: A Master Class By Jim Simons

Using our ecosystem framework as a guide, this is Alphacution's mechanical interpretation of how Jim Simons and the RenTec team gains a persistent edge on the competition; a master class of sorts that may be useful to your trading strategy development, as well...

By Paul Rowady | June 16, 2021 | For Subscribers

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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 Paul Rowady | June 16, 2021 | Open

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Optiver vs. IMC: Battle of Amsterdam’s Option Powerhouses

The missing data finally showed up, and that led us to this comparison of Optiver US and IMC Financial Markets through year-end 2020...

By Paul Rowady | June 8, 2021 | For Subscribers

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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 Paul Rowady | June 3, 2021 | Press

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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...

By Paul Rowady | June 3, 2021 | For Subscribers

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Fix the Spread! A Comparison of Price Improvement by Wholesale Market Makers

Alphacution expands upon an outstanding analysis by BestEx Research on PFOF with additional context on price improvement by leading wholesale market makers.

By Paul Rowady | May 26, 2021 | For Subscribers

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WorldQuant Gets Unruly About Memes

Inspired by reading Igor Tulchinsky's books - albeit a couple years late - Alphacution digs into some modeling to uncover a real world application of The UnRules...

By Paul Rowady | May 19, 2021 | For Subscribers

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IMC Financial Markets: You Win Some, You Lose Some

Options powerhouse IMC Financial Markets scores some recent wins and, apparently, some losses, too. Alphacution shares its evidence...

By Paul Rowady | May 17, 2021 | For Subscribers

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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...

By Paul Rowady | May 14, 2021 | Open

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Alphacution Press: CBS News on Robinhood’s Q1 2021 Order Routing Revenue

Stephen Gandel, a contributor to CBS News and Moneywatch, published "Robinhood raked in at least $110 million from 'meme stock' rally" on May 7, 2021, in part based on Alphacution's analysis of Robinhood's Q1 2021 order routing revenue.

By Paul Rowady | May 8, 2021 | Press

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