Market Structure Primer (2019)
primer.prooftrading.com96 points by firloop 6 months ago
96 points by firloop 6 months ago
You can also find a [PDF] export of this document, a bit more recent (2022) than most of the webpages (2019). From page 67 onwards, there seem to be various notes for future expansion. I hope they also update the website as the document improves.
[PDF] https://primer.prooftrading.com/assets/pdf/Proof-Market-Stru...
As often as these things are wildly incorrect or out of date, I need to applaud this effort. Seems pretty damn spot on as a description of US Equities. My compliments to the team that put this together.
It's a nice description of how things should work, not how they actually work.
No mention of FTDs, the DRS/transfer agents, SEC scandals, the possibility of waving of margin requirements at the whim of 1 person at the FTC (making margin requirements essentially meaningless for some participants), etc.
Are you able to succinctly explain how it works, with meaningful references (not posts in a controversial subreddit)? Because if you can't do that, you're never going to convince anyone and it seems you care more about being "right" than having a conversation.
Random recent example: Page 8, Paragraph 37: describing how Robin Hood was engaged in Naked shorting. I could give you a long list of such SEC documents/fines for RH as well as other major market participants. But that's a lottt of work, I hope this triggers people's curiosity. https://www.sec.gov/files/litigation/admin/2025/34-102170.pd...
A more general one about how the markets (don't) work: Naked, Short and Greedy Wall Street's Failure to Deliver - Susanne Trimbath (book)
Nobody is denying naked shorting exists. What I want to hear is why your beloved GME is going to go up as a result of something that happened 4 years ago.
So your thesis is that the market is rigged, and has always been rigged, but this time it's going to work out for you when it never has before and after 4 years of being wrong?
What? I wasn't even talking about GME at all before you brought it up. I definitely didn't claim that it was going to go up, so why should I find arguments for your statement?
You are repeating all the talking points of GME holders, including obscure things almost nobody knows about, and it's just a coincidence? At least have the decency to be straight-forward with your arguments.
We're not all optimizing for the same thing. :)
A comment containing a few terms I can google and educate myself on, if I'm curious, has far more value to me than "having a conversation" (or whatever engagement metrics you're optimizing for).
He's regurgitating all the GME holder talking points. I'm challenging him to present his conspiracy theory because I know it is full of loopholes, inconsistencies, and is built on almost no evidence at all.
Or better yet I'm wrong and he can tell me why GME is going to moon soon and will explain why with data instead of numerology.
SEC report on GME since you want to talk about that. Page 25: Some institutional accounts had significant short interest in GME prior to January 2021.61 GME short interest (as a percent of float) in January 2021 reached 122.97% https://www.sec.gov/files/staff-report-equity-options-market...
No biggy, (naked) shorting to the tune of more than every share every issued by the company?
What is the point you're trying to make? That FTD's don't exist?
Or that not delivering stock that investors have purchased (not at all or not on time) is super obviously not a big deal in any market?
That margin requirements cannot be waved?
My point is you're a bag holding conspiracy theorist who brings up irrelevant talking points as though it's a viable investment strategy.
Yes, the markets are poorly regulated. Everybody knows that. You've been consistently wrong for years and have been losing money but are incapable of learning from your mistakes.
You asked for substantiation. I gave you that. Your reply is totally off-topic.
Where is the conspiracy theory in what I shared and why?
Why are you so angry?
I'm angry because apes are the most obnoxious people on the internet and you never shutup about your stupid conspiracy theories.
So you're just pointing out that markets are poorly regulated and it's a total coincidence you're repeating all the talking points that apes never shutup about?