![]() Yet, the responsibilities to conduct evaluations and draw the line remain with the regulators and SROs. The Commission may consult market participants for insights and/or have whistleblower programs. Regarding the evaluation of potential conflicts of interest, it is about defining the line between the permissible use of one’s “economy of scope/ scale” to discover new revenue streams and the potential prohibited action(s) that generates a spectrum of adverse effects inflicting damage onto others. Rather, as the trade data would reveal, with consistency, whether the firm was “in effect” acting in the best interest of the customer rather than treating the party as a counter-party (i.e. It is not how a broker-dealer “claims” the trades were dealing with a customer or counter-party. Per Steven and Steven’s empirical research, “Market makers are willing to reduce or eliminate execution advantage to exploit the information advantage.” Hence, raising additional concerns for “selective timing” to get in-and-out of market. Those who point to a slew of settlement cases between ATS operators and regulators do have some merit. ![]() A broker-dealer able to offer multiple Alternative Trading Systems (ATSs) marketplaces is not a problem, whilst alleged exploitations or potential conflict of interest is.
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