What is Rule 15c3-5?
Before an order is eligible to be sent for execution, it must pass through a broker’s pre-trade risk check to ensure the order is not violating any pre-determined thresholds. This rule is known as Rule 15c3-5, but what is this rule exactly? Bob Iaccino...
High-Frequency Trading, Colocation, and the Limits of the Speed of Light
High-frequency trading (HFT) is a method of trading that uses powerful computer programs to transact many orders in fractions of a second. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions. Typically, the traders with...
Exchanges, Rebates and the Effects They Can Have on Your Trading
If you’ve purchased a car in the last 10 years, you’ve no doubt heard the term “dealer cost” which is cleverly worded to imply if you can get a car at dealer cost, the auto dealer will not make a profit on the sale. If you dig deeper however, or speak to someone in...