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Thanks Mike, I have scheduled a call with a number of people for the next 24 hours to get accurate details of what increases will take place and their impacts on customers and individual brokers. I just want to be accurate before I post anything.
The feeling that I have is that changes will take place and they will not go away.
Matt
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That's also my understanding so far, but perhaps they will establish more dependencies regarding the relation between the (increased) cost of data fees and brokerage revenues for the particular client...
"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
Looking at the full market structure; The guys making 100K a day rely on the smaller traders to make that money. If a significant number of traders / firms are driven out of the market then the majority of them will no longer be making 100K a day. I would even bet some of them would go belly up.
The other thing to consider is how many algos will no longer make money with the new fee structure. Many of them make pennies per trade but execute tens of thousands of trades per day. Their narrow profit margin would effectively be wiped out with the increases.
IMO- these fee increases will drive the volatility out of the market. You will be left with the traders / firms who can afford it and the current algos which will likely feed upon themselves due to the decreased volatility, until they drive themselves out of existence.
I just want to say thanks to Big Mike and to all who contribute here. If it wasn't for this forum/thread, alot of us would be taken aback with these fees having not been given ample warning about them.
At least I have time to digest what is going on opposed to being blind sided with them without much notice.
I don't think this result is guaranteed. The per platform thing I think can be over-ruled by the per device clause for the purpose of user count. If I was a data vendor that would be my interpretation (as long as the data was going to the same IP address and requested by the same computer ID, I wouldn't care how many different pieces of software were using the data.)
I am unsure of how getting data through a broker and also a vendor will work (that way I have backup data), that may be two exchange fees, dunno. And for the guys that have multiple brokers, dunno how that will work either.
I feel sorry for the guys that have made a business out of trading literally, corp., LLC, etc. Good planning is turning into a good screwing. The only real option to reduce costs is to abandon the legal protections to save the excessive exchange fees...ridiculous.