By Shanny Basar

Rolet Debates Exchange Rebates

Xavier Rolet, chief executive of the London Stock Exchange Group, entered into a Twitter debate on exchange rebates following news that Massachusetts is reviewing whether they are in the best interest of investors.

Last week Massachusetts’ securities regulator announced an inquiry into whether retail brokerages are routing orders to stock exchanges in return for payments instead of best execution. William Galvin, the secretary of the Commonwealth of Massachusetts, said in a statement: “If financial rebates or kickbacks create a conflict that results in less than the best deal for the investors, this practice must stop.”

Rolet responded to the announcement of the probe:

A “maker-taker” model involves an exchange charging  clients who take liquidity, but offers payments – or rebates – to brokers who make prices and facilitate liquidity. He clarified that Turquoise, the multi-lateral trading facility owned by the London Stock Exchange, uses a maker-taker model as it is not a regulated exchange.

Jim Greco, founder of alternative trading system Direct Match, replied and exchanged a series of tweets with Rolet:

The debate ended cordially:



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