Raymond James On Implications Of Flash Elimination - NYSE Biggest Winner...
...Although once the debate moves away from Flash to its natural progression into dark pools and ultimately HFT, watch out below: "Any move to restrict high frequency trading could have a significant impact on exchanges’ transaction fees as well as revenue earned from co-location; there is also the chance that efforts to restrict HFT in the equities world could bleed over into other asset classes as well, including futures. We view potential regulatory changes as a net negative for exchanges, but it is far too early to assess the impact of potential regulation on these two issues."
The clock is now ticking on the rigger Echange - Broker/Dealer oligopoly.
From the Raymond James report:
"The SEC has already announced that it is looking into the market impact of ever-proliferating dark pools, while recent stories in the media surrounding the increasing dominance and profitability of high frequency trading (HFT) could lead to yet another SEC area of inquiry. Ultimately, these topics address the same core issues around equal access and market transparency that flash orders encounter, but could have much more serious market implications."
hat tip John