Quick Downgrade For Discount Brokers in Light of SEC Comments

As the SEC is considering changes to the little known “maker-taker” system, as first reported by ValueWalk, stock analysts have been quick to downgrade several brokerage firms. The “maker-taker” system is one that permits brokerage firms to receive a cash payment for sending order flow to a particular stock trading platform.  If this fee were to be eliminated, discount brokerage firms, whose low fee offerings are largely funded through the rebate, would be most impacted. Quick mathematical reaction in traditional market maker fashion David Chiaverini at BMO capital markets was quick react. “We believe the crackdown on high frequency traders…