Alphacution provides additional evidence - via Robinhood - that option order routing revenue, the primary source of PFOF, is being negatively impacted by retail adoption of 0DTE option trading - as well as emerging indications of a resurgence in crypto trading...
Public.com - the emerging retail brokerage platform that actually appears to be trying to "democratize finance" rather than merely pay lip service to the concept - launched option trading functionality in Dec 2023 with a brokerage model that is unique relative to all other retail brokerages. Alphacution provides context and exposes some fascinating details...
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...
Returning to a provocative thread from late 2022, Alphacution updates some of Morgan Stanley's latest moves in wholesale market making...
Alphacution shares highlights - and lots of charts - from the most recent trove of PFOF data...
Alphacution found a few grains of new data and used them to estimate the retail share of US equity index volume...
In the conclusion to Parts I, II, and III of this series, Alphacution assembles its findings in terms of total retail equity order flow 'acquisition costs'; some insights into the wholesaler strategy behind why they pay these costs; and a simplified recommendation to the SEC...
Alphacution drops a few bars and a few charts framing IMC Financial Market's significant achievement in option wholesaling...
With the latest data in hand, Alphacution updates its analysis of troubled option wholesaler, Simplex Trading...
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...
