Dealing in a Fee World
Traders Magazine, July 2002
It used to be pretty simple. Nasdaq trades hit the dealer's book, piled up and then - from time to time - were priced and allocated to clients' accounts. But now the business model has changed: Fee-based trading has replaced net trading on a huge portion of Nasdaq business. Market makers are more likely to represent customers in the market than trade with them. Dealers are charging commissions, or commission-equivalents,' for the service rather than buying at one price and selling at another.
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