MinQty - a popular equity trading parameter used by institutions to prevent signaling and market impact – is either not needed or can be much reduced on venues such as IntelligentCross that have low adverse selection. A report by RW Baird said traditional trading venues offer little protection from adverse selection and MinQty has been partially effective at mitigating the problem. MinQty is of mixed value in protecting against poor performance and should not be used as a generic defense tool, the report said, but can act as a venue optimizer to maximize available liquidity while minimizing the implicit costs of trading.
To read the entire report: https://www.rwbaird.com/equities-research/electronic-trading/Minimum-Quantity-Order-Protection-vs-Venue-Optimization#aboutus
