order books might be the future, because it is likely a necessary step to align things with how other market platforms work, thus grow and evolve the FI product
however, i dare say when they do come in, we could see plenty of volatility early on, so maybe we need more liquidity first before we get to that stage of order books
i dont know what sort of spreads FI had like 12 months ago, but i wonder if the dividend increase had to be paid for somehow, thus spreads were tweaked? just a thought
also, any time that a share is instant sold, who is buying it, FI right?
for example lets use harry kane, as the spread is nearly 10%, current prices 5.38 - 4.84
now what do FI do with that share they have bought at 4.84? they no doubt list it back on at the higher price 5.38, so the question is do they jump to the front of the sell queue?
i mean, FI are not going to risk anything are they, if FI are the market makers at the moment they have to act accordingly and balance the books, if a flood of instant sells come in, they will take down the price accordingly and manage the spread, because they cant be left holding the baby
but what does that mean, is kane over priced, because until FI queued sells are clear, only will anybody else be able to sell theirs?
so back to my first point, without FI effectively being the market maker, whereby it seems they try to manage volatility as much as they can (on the buy price), we know how the sell price gets taken down and the spread increased at times, but would order books creative more volatility, i am of the opinion at the moment it would, especially at the top end
just my two penneth from afar, happy to be corrected if any of my views are based on factually incorrect stuff i have stated
