“Many ... corporate bond trading platforms ... have been successful by providing ... solutions that improve the efficiency and effectiveness of the ... dealer-focused (RFQ) trading protocol, with the understanding that the role of dealers as intermediaries is here to stay.”
https://cyberian.digital/wp-content/uploads/2020/01/Cyberian_Off_Exchange_Liquidity_Final.pdf Despite their expanding popularity for both crypto and equities, there is a trade-off that comes with using off-exchanges which investors must consider. The lack of transparency that is associated with these private platforms is often cited as a potential problem because it is perceived to affect the ability to get the best price. In his bestseller “Flash Boys: A Wall Street Revolt” author Michael Lewis lays out some of the predatory tactics used by HFTs to front-run large block trades performed in off-exchanges.
https://tabbforum.com/opinions/trend-analytics-the-new-pre-trade/ Michael Mollemans TABB Group - " “Traditional approaches are not fit for purpose in today's markets,” said Dr. Darko Matovski, CEO of causaLens. “Using technology that autonomously adapts to dynamic changes and embeds causality is the only way to discover alpha in execution.” " Also see: The IEX D-Limit Proposal: It’s Good…But What If It’s TOO Good?
https://tabbforum.com/opinions/redefining-the-us-consolidated-tape/ Larry Tabb TABB Group - "with a new governance structure, a new and better consolidated tape could tackle some major issues: ... Reducing the latency associated with how data is aggregated, normalized, and redistributed. ... Increase the depth-of-book levels incorporated in the consolidated tape ... Fix or revise the professional versus non-professional definitions that determine how much a firm needs to pay the SIP per user. ... Putting odd-lot quotes into the consolidated quote. "
https://tabbforum.com/opinions/sec-proposes-amendments-to-governance-of-market-data-plans/ Steven Lofchie, Cadwalader - "Under the proposed Order, market participants would be required to submit a "single, new equity data plan" (aka: the "New Consolidated Data Plan") in which all of the exchanges would participate. A governance committee for the new plan would be formed. One-third of the votes would be held by entities other than the exchanges." ... "Having one market system plan rather than three is not going to change the reality that the exchanges and the broker-dealers have interests that are fundamentally averse to one another: Each wants to "own" as much data (intellectual property) as possible, give away as little data as possible, and either charge as much as possible or pay as little as possible."