Re:Robinhood is said to draw on bank credit lines amid tumult
by rswail on Friday January 29, 2021 @03:26AM
(#25955252)
So what you're saying is by disintermediating share/derivative trading, one level of middlemen has been made obsolete?
Sort of like travel agents and airfares?
Why is this a problem? The fact that the share trading market is keeping these middlemen in place is part of the exploitation of the process.
Market makers perform a useful function in terms of maintaining an orderly market. Brokers don't. Especially ones that offer credit to their customers, thus hiding the risk to the counterparties of a trade.
Sort of like travel agents and airfares?
Why is this a problem? The fact that the share trading market is keeping these middlemen in place is part of the exploitation of the process.
Market makers perform a useful function in terms of maintaining an orderly market. Brokers don't. Especially ones that offer credit to their customers, thus hiding the risk to the counterparties of a trade.