In the cut-throat world of US stock trading, some smaller players have devised a tactic to sidestep the giant high-speed market makers who have come to dominate the business of buying and selling shares. A handful of upstart brokers are taking retail orders — equity trades placed by individual investors — into special off-exchange venues known as private rooms.
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Retail brokers sidestep market-making giants with private rooms
“The aggregate execution quality for our portfolio of orders is often far better than what it had been in recent history when relying on a wholesaler model,” John Krudop, retail trader at Wells Fargo Securities, told a Bloomberg market structure event last year.
