Understanding Today’s Market Structure

Published on
July 2nd, 2019
36 minutes

Understanding Today’s Market Structure

The Expert View ·
Featuring Justin Schack

Published on: July 2nd, 2019 • Duration: 36 minutes

As investors' options have grown exponentially, the underlying market structure has become incredibly complex. And according to market structure expert Justin Schack, no one with a blank slate would recreate today's market structure. Schack, a partner at Rosenblatt Securities, says that despite all the complexity, it's not a fundamentally unfair system that should be "blown up". Instead, he believes investors have largely benefitted from the changes in market structure. He also argues that some advocates for structural change have ulterior motives. Filmed on April 9, 2019 in New York.



  • SP
    Steve P.
    10 July 2019 @ 03:11
    Great legal info pertaining to fees paid by brokers to exchanges. .12 cent bid/ask is a proper red flag alert.
  • SP
    Steve P.
    10 July 2019 @ 01:33
  • TR
    Theodore R.
    5 July 2019 @ 09:42
    SUGGESTION - REQUEST to consider putting together a series of (purely educational) videos on market structure, US and at least major non-US markets. I'm probably in the older bucket of subscribers but having spent a good part of the '90s in emerging markets, I can tell you guys that post-trade (or post-order) is very very important piece of the puzzle. Honestly, one of my biggest frustrations for the last 15 or so years is my complete lack of understanding of the post-order process. I have tried on several occasions to get banks and brokers to explain how orders are routed and executed and the lack of transparency (or better, understanding) from the client-facing guys is phenomenal. Very likely a lot of my fellow subscribers will find the topic boring. We all spend a lot of time on figuring out the proper allocation / exposures and probably close to zero time to understand what happens once an order is placed. From where I stand, if one claims that risk management is part of their process and the respective market structure knowledge is missing, there's a problem ... perhaps it's one of those 'it doesn't matter until it does' situations. Not to go down the path of new asset classes (bitcoin and such ...); I'm really clueless when it comes to that but, frankly, do not discount the possibility to find more transparency there vs. the traditional asset classes. Thank you for the consideration.
  • MM
    Mike M.
    3 July 2019 @ 13:00
    Too vague. Justin should have offered more detail. At the very list go onto a couple of examples.
  • GF
    Gordon F.
    3 July 2019 @ 00:37
    Any time there is a complex system those who invest the time to really study it and how to play it will always have an advantage over those who do not. Personally, I try to minimize my exposure to such by placing limit orders to ensure that if/when I am filled, it is at worst, at the price I set. And usually that is the price I get, except occasionally when there is a gap overnight. Regardless, with a limit order I am pretty much unaffected by dark pools, exchange routing, etc. The commission is what my broker charges, and if they are able to make a few cents more by understanding the system, more power to them.
  • ra
    rehan a.
    2 July 2019 @ 23:37
    Can’t wait for Ronan Ryan on Friday !
  • OC
    Otto C.
    2 July 2019 @ 15:47
    The "if it's not broken, don't fix it" attitude is antiquated and it stunts progress.
  • TJ
    Terry J.
    2 July 2019 @ 12:52
    I enjoyed hearing Justin explain how the markets, work as well as the history of how we got here! Highly informative and educational. Thank you Ed and RV.
  • TF
    Todd F.
    2 July 2019 @ 09:23
    Ed was a great edition. Watched him on RT. Great questions