Cezary Podkul

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149 appearances 3 recordings 1 series first heard Mar 2018 last heard Jan 2020

Cezary Podkul’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · How Stock Price Gaps Cost Investors $2 Billion Per Year · 15 Feb 2019 podcast

So, you know, in that case, we asked the researchers to give us some examples of what they looked at.

And they pulled out one trade in Apple on January 7th, 2016, which was a day that they chose at random.

And one trade sold 100 shares of Apple for $99.12.

when this national best bid available in the market was $99.12.

But direct feeds from exchanges show that 100 shares could have been sold elsewhere for $99.16.

So on that particular transaction, the seller was $4 worse off for executing at that lower price.

And just looking at that one particular day, they calculated a total opportunity cost of about $105,000.

And then across all of 2016, they came to an estimate of about $2 billion, which they say is a conservative estimate.

Yeah, this is a very hot topic of research.

There's a lot of different papers and studies being done, all of which have various different methodologies.

With regard to this one, we talked with the Modern Markets Initiative, which represents high-frequency trading firms, and they felt that by the time someone sees a better price elsewhere, the opportunity to trade at that price may already be gone.

So in their view, it's sort of like comparing prices in the past that might be published in two newspapers,

And they don't think it's really a valid way of doing it, but there's certainly others who think that there's a valid comparison to be made.

The broker has to seek to execute the trade at the best available price, unless you give them some kind of instruction otherwise.

They didn't assist them in the study.

So in 2017, the government had this effort to understand cybersecurity issues.

And they reached out to a bunch of people in the market, including high-frequency trading firms, as part of that effort.

They have a large effort to understand vulnerabilities in the market.

And as part of that, they funded this study.

But the study, it wasn't like Citadel and these firms were.

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