Market-making and order-routing service for retail brokerage orders
Receive retail stock orders from brokerages, split large orders into smaller orders, route them across the market to seek the best prices, fill the orders, and earn the spread.
From Fireship — The most expensive software bug in history... at 01:04
Problem: Brokerages can outsource order execution instead of filling every retail order themselves, while the market maker provides order execution and captures the spread.
For: Brokerages that pass retail stock orders to an external market maker.
Examples
- Knight Capital processed about $20 billion in trades per day and was described as responsible for 10% of all U.S. stock trading at one point.