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

A Regulatory Outlook for Off-Exchange Market Makers in the Aftermath of the GameStop Hearings

Alphacution contributor, Stanislav Dolgopolov, provides a detailed review of potential regulatory issues - including payment for order flow (PFOF), the multiplicity of roles of off-exchange market makers, and their informational advantages, among others - that may receive new scrutiny in the aftermath of the GameStop congressional hearings.

By |2021-05-26T21:57:00-04:00May 26th, 2021|Open|

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|

Alphacution Publishes Payment For Order Flow 2020, Part I: Rate Heatmaps

2020 will be remembered for many reasons. In the context of Alphacution’s ongoing research focus, we want to remember 2020 as the first full year of enhanced transparency into the mechanics and impacts of the long-held practice of payment for order flow (PFOF). In this 23-page, 20-exhibit deck, Alphacution presents PART I of its upcoming comprehensive case study, Payment For Order Flow 2020, with a focus on order routing rate heatmaps.

By |2021-05-14T22:13:11-04:00April 27th, 2021|Open|

Summary of Robinhood’s Legal Woes

Today - February 26, 2021 - at 12:13pm ET - in what appears to be a well-managed front run of press collaboration, the Wall Street Journal published "Robinhood in Talks to Settle Finra Probes Into Options-Trading Practices, Outages" based on a filing that says the company is also being examined by the SEC, states. Here are the key parts of that filing - and then some...

By |2021-05-14T22:27:47-04:00February 26th, 2021|Open|