Is the Maker-Taker Pilot DOA?


After more than a decade of debate, regulators are poised to act on a pilot for maker-or-taker pricing, a practice whereby market makers are paid a rebate to add liquidity and are charged a fee to remove liquidity by electronic trading venues. FlexTrade’s Ivy Schmerken investigates.



After more than a decade of debate, regulators are poised to act on a pilot for maker-or-taker pricing, a practice whereby market makers are paid a rebate to add liquidity and are charged a fee to remove liquidity by electronic trading venues.

The SEC’s Equity Market Structure Advisory Committee (EMSAC) has recommended to move forward with a pilot on reducing access fees to gain an understanding into how rebates and access fees influence order routing decisions.

The SEC could open the maker-taker pilot for public comment in 2017.

But, now analysts are suggesting that a maker-taker pilot is in limbo, or at the very least, could be postponed under the incoming Trump administration.

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FlexTrade is a global leader in broker-neutral, execution and order management trading systems for equities, FX, options, futures and fixed income. A pioneer in the field, FlexTrade introduced the first trading system that allowed clients to control and customize their proprietary algorithms while maintaining the confidentiality of their trading strategies. Change is the only constant in electronic trading. That's why FlexTrade is continuously upgrading its products and services. All can be tailored to meet the demanding requirements of a global client base of more than a 225 buy- and sell-side firms.
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