According to wallstreetand tech the last vestige of Bernard Madoff's trading empire has disappeared from Wall Street. Surge Trading, which agreed in June 2009 to pay as much as $25.5 million for the convicted swindler's trading operations, has closed its doors because of insufficient capital.
The company, which was backed by venture capitalists and veterans of discount brokerage firms such as Fidelity Investments and TD Ameritrade Holding Corp, hoped to prosper by executing stock trades for brokerage firms that service small investors.
Madoff made his name and initial fortune on Wall Street legitimately through Bernard Madoff Investment Securities, a "third-market" trading business. It bought and sold stocks for brokerage firms that preferred to send some orders to independent market-makers rather than to brokers on the New York Stock Exchange or other conventional venues.
To encourage orders, firms such as Madoff's often rebated a portion of their execution fees to brokers with large bases of relatively unsophisticated retail clients. His mastery of market structure and of techniques such as payment-for-order flow that he claimed increased price competition earned him respect from regulators and competitors….
Read more at http://www.wallstreetandtech.com/trading-technology/231900338
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