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Abolish Access Fees!

Traders Magazine, January 2002

Sanjiv Gupta

A series of significant pricing changes for SuperSOES, recently announced by Nasdaq, is supposedly designed to centralize customer orders and increase liquidity for market participants. Nasdaq not only mandates an access fee for all market maker liquidity in SuperSOES, but also positions itself as the collector of those access fees. Then, in an arrangement tantamount to payment for order flow, Nasdaq rebates half of the access fees to the market makers providing liquidity while retaining the other half for itself. Clearly, the new pricing structure weaves access fees and payment for order flow much deeper into the fabric of the National Market System (NMS).

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