Strake Inc (SRKE)

[xyz1002]

CDEL is the most efficient and best MM as no human is involved. The computer algo can study the charts which is nothing but the mood of the market at any given time in milliseconds. CDEL is not there to screw anyone in particular but maintain the market while making money for its owner.

The way to make money for them is to create volume. If the market is in RED as it is for the last few days then CDEL can't help very much. It won't let the pps crash drastically. That's why you saw someone dumping many million shares and CDEL absorbed it and now trying to sell those shares slowly while maintaining the market. So the computer is faking large BID size to entice buyers. In other words, CDEL is giving huge support to pps because they have to make money too.

The computer algo is designed to "TRY" to close all positions by market close the same day. But that is practically not 100% possible everyday. So it can stay long/short overnight.

CDEL is retail's friend. But it goes the way the market wants to go.

Say for example a company or a note holder directs its brokerage to sell 50 million shares that day, then the order gets to CDEL. Then the computer does all the calculations, pps movement, price volatility, volume, etc and decides how best to sell those 50 million shares without letting the price crash, However, the pps will go down when you suddenly have 50 million shares to sell. CDEL does its best to maintain the market. They are the largest MM today.

Robinhood makes most of its revenue from CDEL. CDEL paid Robinhood $650 million in 2nd quarter of 2019 as fees just to get the order flows from Robinhood. Imagine how much money CDEL makes by executing the trades. CDEL gets order flows from all brokerage houses. Robinhood is just one of them

I was working in Wallstreet when CDEL got started with algo trading. It needed so many quants that it sponsored an MS Quant program at Columbia University with 100% job guarantee for all whoever graduate from that program. It is the best Quant program to date and the starting base salary is $200K/year once you graduate.

All MM hates CDEL as CDEL takes away most businesses from other MM. Although Etrade has its own MM even they send their orders to CDEL. All brokerage send their orders to CDEL.