From devices such as iPhones to desktops, investors will enter stocks they want to trade and the market will respond by broadcasting market quotes back to the investor’s device. Investors review the quotes offered to them and trade if any of the quotes work for them. This peer to peer marketplace similar to eBay has many advantages from the current centralized stock exchange market structure for the following reasons: 

1. Fast trading systems become irrelevant in a peer to peer market.
2. Inside quotes are generated based on the size of an order not one size fits all inside quote which we have today. Small orders will have tighter spreads; larger orders will have wider spreads. This is impossible in today’s markets.
3. Investors for the first time will be able to participate in the development of the inside quote which will allow them to buy block size orders below the national best bid price or sell blocks above the national best offer price. This has never been done before!
4. If the market comes to the investor rather than the investor going to the market to fill his orders, the investor basically reverses the market’s efficiencies against itself which reduces his transaction costs.

How is this possible? Why don’t we already have this type of market?

Answer: INVENTION! New processes and methods for trading that incent investors and market makers to construct quotes for investors.

Currently there is no way to compensate market makers to fill institutional orders that are larger than what’s available at the inside quote. Deep Liquidity provides such a solution.

Currently there is no way to compensate investors to participate in the market making process. Deep Liquidity provides such a solution.

If a new form of “transaction cost” transparency can be given to investors, investor’s will consider more illiquid investments than they do now. This will pump new liquidity into the markets.

If long term investors participate in the market making process the markets will become less volatile and the risk to market collapses will be reduced.