Thats not quite true. Price improvement happens all the time on limit orders, but I'll concede you'll pay close to it if it fills.
> The complicated types (hide-n-slide, NBBO pegs, and conditional pegs[1]) may help some players at the expense of others.
This is true of limit/market/stops as well.
The Budish paper is very interesting.
What we don't know is what it would do to the spread, which is very important especially given that it will be harder to predict the clearing price. It is also a major change to the markets, virtually impossible to implement and its not clear to me what that risk is buying us, especially given that I fully expect most participants to go through an intermediate first.
Thats not quite true. Price improvement happens all the time on limit orders, but I'll concede you'll pay close to it if it fills.
> The complicated types (hide-n-slide, NBBO pegs, and conditional pegs[1]) may help some players at the expense of others.
This is true of limit/market/stops as well.
The Budish paper is very interesting.
What we don't know is what it would do to the spread, which is very important especially given that it will be harder to predict the clearing price. It is also a major change to the markets, virtually impossible to implement and its not clear to me what that risk is buying us, especially given that I fully expect most participants to go through an intermediate first.