Tabb: Market Rebates Attract Flow Where It Doesn't Belong

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Mark Melin
Published on
Updated on
Tabb Study Trade Value

In a new white paper, Larry Tabb, namesake and CEO of the Tabb Group, dives into the payment for order flow issue and draws a nuanced conclusion. While payment for order flow may create distortions, and even “artificial ripples” in the price discovery, sending orders to buy and sell stock to venues that may not have the best execution history, upsetting the standard quo may bring unintended consequences as well. Larry Tabb notes ICE derivatives CEO wanted payment for order flow banned In the white paper titled “Rebates and Market Distortions: The Cost of Liquidity?” Tabb Group, a capital markets research…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.