FT : Freedom, style, sex, power: the fetishisation of the fast car

Freedom, style, sex, power: the fetishisation of the fast car
In an extract from his new book, Stephen Bayley explores the “age of combustion” in film and fiction

Jack Kerouac’s On the Road (1957) has become a timeless classic, effortlessly transcending the druggy and solipsistic limitations of its Beat Generation milieu. It was a road trip, and his car was a ’49 Hudson, and Kerouac wrote not on sheets, but a continuous roll of paper, a device that surely aided his fluency. Here we read: Q. “Where we going, man?” A. “I don’t know but we gotta go.”

Truly, we are at the end of an era. You are reading this in the last days of the Age of Combustion, an art historical period as precise, as meaningful and as productive of beauty as the rococo or baroque. Of torment and distress too. Perhaps every era has its scary Inquisitions.

Jack Kerouac’s road trip is one of literature’s finest acknowledgements of the car in culture. That quote perfectly captures the automobile’s absurd promise and its shocking betrayal: drivers are tempted by a suggestion of freedom, but are ultimately incarcerated in one way or another.

But driving a car is not just about travel. Perhaps it never really was. It is also the experience of friction and the discipline of gears, an awareness of penetrating the atmosphere, the thrill of speed, an opportunity to test your perceptions, nerves and reflexes. Of finding a vista of escape. Occasionally of confronting fear. And all of this excitement on a daily basis. A daily commute offers raw sensual experience that, a century ago, was the stuff of deranged fantasy to the Futurists.

Tom Wolfe said that cars are “freedom, style, sex, power, motion, colour… everything”. And indeed, from Huckleberry Finn to Grand Theft Auto, via Kerouac and Bob Dylan’s Highway 61 Revisited, America reads like a road epic. Consider F Scott Fitzgerald, the great poet of ruined glamour and wasted promise. In 1920, flush with the advance from This Side of Paradise, he fired up his 1918 Marmon, bundled his wife into the passenger seat and drove from Connecticut to Alabama, so Zelda could rediscover the peaches and biscuits of her southern youth. They were looking for a lost Golden Age, a quest which later became the subject of The Great Gatsby. (In the book, a yellow Rolls-Royce plays an important part.) Fitzgerald turned this eight-day journey into a series of articles, which appeared in the US Motor magazine, in 1924, eventually published in book form, in 2011, as The Cruise of the Rolling Junk.

The reality was one of bust axles, blow-outs and misdirections, since Zelda could not read a map. Scott and Zelda never found their Golden Age, but Fitzgerald could not let the fantasy go. He described “an ethereal picture of how we would roll southward along the glittering boulevards of many cities, then, by way of quiet lanes and fragrant hollows whose honeysuckle branches would ruffle our hair with white sweet fingers”. That’s what a Marmon could do for you. On return, Zelda icily wrote “the joys of motoring are more-or-less fictional”.

Even as the private car ceases to be the paramount consumer product, its extraordinary imagery will survive. Car design, along with pop music and the movies, was one of the defining activities of the 20th century. Significantly, each was a collective activity with more than one auteur. Consider the car’s role in the cinema. The title Rebel Without a Cause, the 1955 film that made James Dean famous, was taken from a psychological study about disturbed youth. In the film, his car was a 1949 Mercury Club Coupe with a 255 cu in (4.2 litre) flathead V8 – a car that later became a favourite of Californian hot-rodders and customisers, the inspiration of Tom Wolfe’s remark. A month before Rebel was released, a 24-year-old Dean was killed in the Californian desert when his Porsche 550 Spyder collided with a Ford Tudor. This lent Dean’s lead sled a sinister posthumous cultishness as a memorial to destroyed youth, while enhancing Porsche’s reputation for danger.

Alfred Hitchcock understood how cars convey meaning. His wife Alma chose the pretty, metallic ice-blue Sunbeam Alpine Series III that Grace Kelly drove in To Catch a Thief, the masterpiece romantic comedy-thriller. In export markets, the Alpine was intended to fit between the primitive MG TD and the more sophisticated Jaguar XK120. It was also the perfect fit for the beautiful but chilly Grace Kelly character. Her stylish drive along the Grande Corniche with a soundtrack of wince-making squeals of cross-ply Dunlop tyres and scrunching gravel, with an immaculately dressed Cary Grant as a composed, but very nervous, cat-burglar passenger, is one of cinema’s great car sequences. So influential was the film in creating a popular concept of continental glamour, the views of Monte Carlo from the Corniche later became a cliché in car advertising.

Like To Catch a Thief, Mike Nichols’ The Graduate, of 1967, was a superlative film based on a mediocre novel. It is one of the greatest rite-of-passage-coming-of-age movies, combining motifs of forbidden sex, rebellion, redemption, and an Alfa Romeo plays a leading role as a means of escape, all set to unforgettable sing-along music by Simon and Garfunkel. The Alfa is a 1966 Series I Duetto with the classic 1.6-litre twin-cam four. Its body was drawn by Franco Martinengo of Pininfarina, and this early version has the distinctive curvaceous osso di seppia (cuttlefish) tail. The car’s well-known frailties become a dramatic moment in the film when the Duetto runs out of petrol in the Californian desert because of a faulty fuel gauge. But the great visual moment in the film is the Dustin Hoffman character, Benjamin Braddock, rushing over San Francisco’s Bay Bridge on the way to frustrate the young Ms Robinson’s wedding. The Rosso Corsa Alfa is seen from above, travelling from the Embarcadero to Yerba Buena Island (and also going the wrong way through the Gaviota Tunnel on US Route 101). The speeding car somehow conveys a perfect expression of wistful longing, and the elegant Alfa confers on Hoffman-Braddock the keenest sense of eroticised style and nervous urgency. But what does the greatest movie franchise of them all tell us about cars?

If William Lyons had not been so epically tight-fisted, James Bond’s car would have been an E-type. The producers tried to blag freebie Jaguars, but Lyons was disinclined to deal. So, 007 got a DB5. (But that was only in Goldfinger, the third Bond film – Bond’s first movie car was a Sunbeam Alpine, successor to Grace Kelly’s.) It’s an assumption of pop-culture analysis that cars in the cinema add meaning and mystique to heroes and villains. Of course, Bond’s creator, Ian Fleming, had already brought impressive amounts of brand-related snobbery to his masterpieces. His own taste for cars was altogether different: he drove Thunderbirds because he enjoyed their power and gadgets. Latterly, a Studebaker Avanti with an incongruous Home-Counties-style badge-bar. Meanwhile, the real-life spy Kim Philby drove a grim Humber from the Ministry of Defence carpool. So, these are the precious brand values Connery brought to Aston Martin: sadism, sexism, snobbery, hedonism, refined violence, good taste, a sharp but relaxed sense of style, gentle wit and muscle. Really, you could not have a more valuable set of associations for fast cars.

In 1909, EM Forster wrote his short story The Machine Stops. It’s a gloomy tale. People live underground, paying tribute to a remote and scary technical entity known as The Machine. They no longer travel because they use video conferencing and text. Sound familiar? And then: The Machine stops. When the hot server farms in the Arizona desert melt because there is no more gasoline to power the generators that power the air-con they devour, our machine will stop too. The economist John Maynard Keynes said by about now we would all be so rich, no one would have to work. He was wrong too. The Poet Laureate of Dystopia, JG Ballard, predicted by about now private cars would not be allowed on public roads. Instead, “enthusiasts” would use them under supervision in enclosed “motoring parks”.

They say the autonomous electric car will set us free. But the driverless car will, in every sense, lack soul. And people like soul, even if it is their prison warder. And autonomy ignores the psychological reality of car ownership which is, to be honest, based on concepts of pride and prowess and personality. We’re told that the steering wheel will disappear. But what will take its place? “The screen will replace the steering wheel. You’ll watch the news as you travel. Or movies.” So says Norman Foster, an architect so committed to a tech future that he has designed a glass “infinite loop” for Apple at its Cupertino HQ.

It seems the semantics of the car will no longer be focused on selfish notions of enthronement, ownership and dominance, but a utopian one of shared space. Cars may become ever more like mobile architecture: spaces to be enjoyed. But what will replace the fascination and romance? Well-designed screens will have their allure, but the thirst for style, power and control may not be easily quenched.

Norman Foster concludes: “And when you arrive, after a pacific journey staring at a screen, you’ll get into your classic car and indulge yourself on the track.” JG Ballard’s prediction was, perhaps, not so very wrong.

FT : Johnson accuses EU of infringing on ‘UK integrity’ over N Ireland

Johnson accuses EU of infringing on ‘UK integrity’ over N Ireland
British leader’s swipe exacerbates dispute with EU over protocol he signed as part of Brexit deal

Boris Johnson has pledged to do “whatever it takes” to protect the integrity of the UK after his government accused Emmanuel Macron of talking about Northern Ireland “as if it were somehow a different country”.

Brexit tensions flared again at the G7 summit on Sunday as the UK prime minister and foreign secretary Dominic Raab opened up a new front in their war of words with the EU over the post-Brexit trading regime in Northern Ireland.

In spite of pleas by Joe Biden, US president, for both sides to calm the row and find a solution, the G7 summit has led to heightened tensions over the post-Brexit trading regime in the region.

Speaking at a press conference, Johnson said that the UK was “indivisible” and pledged to do “whatever it takes to protect the territorial integrity of the UK”. He added: “We are all part of one great, indivisible United Kingdom and that is the job of the UK government to uphold.”

Raab, meanwhile, told the BBC: “We have serially seen senior EU figures talk about Northern Ireland as if it were somehow a different country from the UK. It is not only offensive, it has real world effects on the communities in Northern Ireland. It creates great concern and great consternation.”

He asked EU leaders to consider how they would feel if Johnson talked about Catalonia, Flanders or Corsica as if they were — respectively — not fully integrated parts of Spain, Belgium or France.

“We need a bit of respect here and also frankly an appreciation of the situation for all communities in Northern Ireland,” Raab added.

But Macron, the French president, responded that “we all need to stay calm” on the subject of Northern Ireland. He said: “France never took the liberty to question the sovereignty, the territorial integrity of the United Kingdom.”

“My wish is that we succeed collectively in putting into action what we signed several months ago,” he said at a press conference. “Let’s not waste time with controversies that are created in corridors and back rooms.”

The dispute centres on the different interpretations in London and the EU of the Northern Ireland protocol, the part of Johnson’s Brexit deal concerning trade in the region.

To ensure an open border in Ireland, the UK agreed to carry out some checks on behalf of the EU at ports in Northern Ireland for some goods arriving from Great Britain. The aim was to stop goods passing unchecked, via the open border in Ireland, into the EU single market. Britain claims the EU wants to impose “draconian” checks; the EU insists it is trying to be pragmatic.

The most imminent flashpoint in the dispute comes ahead of June 30 when the EU ban on chilled meat imports is supposed to come into effect in Northern Ireland, blocking the sale of British sausages and minced beef in the region.

During a tense meeting on Saturday, Johnson asked Macron how he would feel if Toulouse sausages were banned from being sold in Paris.

Macron, who was speaking in English, replied that it was a poor comparison. British officials claimed Macron pointed out Toulouse and Paris were part of the same “country.”

An Elysée official clarified that the French president was making a point about geography: “The president said that Toulouse and Paris are in single geographical territory. Northern Ireland is on an island.”

The French official added: “He reminded Boris Johnson that exiting the EU was a British decision and that he had to respect his word.”

But Downing Street seized on Macron’s remarks as an apparent indication that the French president did not recognise that Northern Ireland was an integral part of the UK

Lord David Frost, the UK Brexit minister who attended meetings with EU leaders in Carbis Bay wearing union jack socks, will now resume negotiations with Maros Sefcovic, his opposite number in the European Commission, to try to find a compromise.

The EU has threatened to impose trade sanctions on the UK if it unilaterally extends the “grace period” covering the export of British chilled meats to Northern Ireland beyond June 30.

Johnson denied that the summit had been overshadowed by Brexit. “I can tell you that the vast, vast majority of the conversations that we have had over the last three or four days have been about other subjects.”

FT : Ares Management and Maven Capital Partners back acquisitive new business

Ares Management and Maven Capital Partners back acquisitive new business
Titan Wealth Holdings looks to grow assets under management to £20bn-£30bn over next 5 years

Private equity groups Ares Management and Maven Capital Partners have teamed up with a family office to back the launch of an acquisitive new business in the UK wealth and asset management market.

Titan Wealth Holdings is launching with two acquisitions: Tavistock Wealth, a multi-asset manager with £1bn in assets under management for retail clients, and Global Prime Partners, which has £2bn in assets under administration and provides execution, settlement and custody services.

It wants to grow assets under management to a target £20bn-£30bn over the next five years through more deals, and is seeking to take advantage of a fragmented market for discretionary fund managers. The new group will bring fund management, administration and a technology platform all under one roof.

The launch of Titan comes as consolidation is sweeping across the wealth and asset management industries. Groups that run money on behalf of demographics ranging from retail investors and wealthy individuals to the largest institutional clients are seeking more scale to compete in a world where low interest rates and the rising cost of regulation are eating into their margins.

Martin Gilbert, the founder of Aberdeen Asset Management, is looking to tap into the trend with his new venture AssetCo. The Aim-listed company last month announced the acquisition of Edinburgh-based boutique Saracen Fund Managers. On a much larger scale LGT Group, which is run by the Liechtenstein royal family, last year fully acquired LGT Vestra, four years after it initially took a majority stake in the wealth manager.

Titan is backed by £170m in capital from Ares, Maven and Hambleden Capital, the private office of the Sarikhani family. The chair of Hambleden, Ali Sarikhani, set up Vistra Trust, an administration business that now has $370bn in assets under administration.

Titan is founded by James Kaberry and Andrew Fearon, who are co-chief executives of the new business. Kaberry set up Pantheon Financial, which became one of the UK’s largest IFA groups, in 2000. He later sold it to Friends Life in 2007 before buying it back in 2000 and reselling it again in 2017. Fearon has worked as a director and investor within several private companies.

Kaberry and Fearon said: “The discretionary fund management sector is currently in a state of flux with considerable dislocation and outdated processes as technology and client demand evolve ever more quickly. The market is ripe for consolidation.” 

Titan is in deal talks with six other discretionary fund managers, and is focusing on groups with between £100m and £1.5bn of assets under management. It is targeting £30m-£40m in earnings before interest, tax, depreciation and amortisation in the next two years.

>>> Weekend Papers Summary

Weekend Papers Summary
NEW YORK TIMES
Saturday
• The Justice Department’s inspector general opened an investigation into the decision by Trump-era federal prosecutors to secretly seize the data of House Democrats and reporters in a bid to find the source of leaked classified information.
• +/- JNJ: A federal order that 10M doses of the company’s coronavirus vaccine produced in a Baltimore factory run by EBS cannot be used is the latest in a series of setbacks for the company, which sought to be a key source of vaccines.
• Attorney General Merrick Garland revealed a plan for protecting voting rights and said the Justice Department would double enforcement staff, scrutinize new state laws that seek to curb voter access, and take action if it sees a violation of federal law.
• The Hong Kong government will begin blocking the distribution of films it deems undermine national security, marking the official arrival of mainland Chinese-style censorship in one of Asia’s key filmmaking hubs.
• Governor Greg Abbott of Texas said on Thursday that the state would build a border wall with Mexico, but he offered few specifics about construction that would extend one of former Donald Trump’s key projects.
• The Biden administration will restore environmental protections to Tongass National Forest in Alaska, one of the world’s largest intact temperate rain forests, after Trump removed them to pave the way for logging and road construction.
• +/- AAPL, GOOGL: As the reach of tech giants grows, they have become surveillance intermediaries and partners for law enforcement authorities, able to arbitrate which requests to honor and which to reject.
• Chinese police are still buying hundreds of thousands of dollars’ worth of American DNA equipment despite warnings from the US government that the technologies could enable human rights abuses.
Sunday
• The private equity industry “has perfected sleight-of-hand tax-avoidance strategies so aggressive that at least three private equity officials have alerted the Internal Revenue Service to potentially illegal tactics” at dozens of firms.
• President Biden urged European nations and Japan to counter China’s growing economic and security influence by offering developing nations hundreds of billions in financing as an alternative to relying on Beijing for infrastructure.
• Indian prime minister Narendra Modi’s efforts to crush dissent and impose a narrative on the country may not be able to counter widespread anger over his stumbling response to the pandemic, undermining a key part of his strategy for wielding power.
• The FBI has made strides in cases involving criminals using encryption and cryptocurrencies, but law enforcement sill faces challenges in an increasingly digital world, and a recent global sting operation may simply drive bad actors farther underground.
• Traffic has begun to return as the economy has revived, but planners, transit agencies and researchers are now considering the remarkable possibility that in many places it won’t revert to its old shape amid newfound work flexibility.

WALL STREET JOURNAL
Weekend
• House lawmakers proposed bipartisan legislation to rein in the country’s biggest tech companies, including a bill that seeks to make AMZN and other large corporations effectively split in two or shed their private-label products.
• As Western economies rebound from the pandemic, Covid outbreaks in Asia—where vaccination campaigns are in early stages—is creating new bottlenecks in the global supply chain, threatening to push up prices and weigh on the recovery.
• The Biden administration will allow some healthcare providers more time to spend $187B in emergency coronavirus funding following an appeal from hospitals and congressional lawmakers.
• Senior Democrats hope to pass budget resolutions by the end of July, preparing late summer and early fall a package that could determine the scope of President Biden’s ambitions on infrastructure and social programs.
• + JNJ: The FDA is making millions of the company’s Covid vaccines available for export from an EBS factory that has faced contamination problems, leading to the rejection of 60M doses of the shots.
• The FBI’s ability to regain most of the Colonial Pipeline ransom from hackers demonstrates a growing technical ability to disrupt the cryptocurrency infrastructure that has enabled hackers to squeeze hundreds of millions of dollars from victims.
• During his meeting with NATO allies Monday, President Biden is set to encounter skepticism from some who question whether efforts to counter China could distract from the alliance’s primary goal of deterring Russia.
• South Korea can now build missiles able to reach Beijing—Washington had had imposed limits on Seoul’s weapons program for four decades but lifted them as North Korea’s nuclear arsenal expands and China’s military strength grows.
• + BP: The oil major’s plan to spin off its operations in Iraq into a stand-alone company is part of a larger effort to shuffle its assets and investment plans in its pivot toward lower-carbon energy and give it more flexibility in developing strategies.
• “The cheapest dollars in years are spurring a rise in foreign investment in US government bonds at the same time that pension funds are boosting their holdings—and that demand pickup could weigh on Treasury rates.”
• AMZN customers have grown accustomed to having packages sent via one-day delivery, leaving small businesses little choice but to do the same, forcing them to raise prices, risk lost sales, or eat the shipping cost.
• Germany removed a legal loophole that had made it a prime destination for patent litigators who target fast-growing tech companies—the new law will require a check to ensure that any injunction doesn’t create “undue hardship” for third parties.
• H.O.T.S.: “Policy makers are reviving old-school industrial planning policies to face challenges posed by China and the pandemic, but European recovery funds don’t appear targeted enough to fix a lopsided economy”; Strength in cloud computing and gaming give MSFT an edge over rivals; Debates about inflation are ongoing, but the bond market seems unfazed.

FINANCIAL TIMES
Weekend
• President Biden “has won support at the G7 summit for a ‘carry on spending’ plan as western leaders rejected austerity in a post-Covid world and vowed to tackle inequality at home and abroad.”
• A G7 pledge to provide one billion coronavirus vaccine doses to poorer countries has been criticized by campaigners for greater access as inadequate, and for failing to bridge the global divide in supplies.
• Corporate sponsors of the upcoming Tokyo Olympics fear brand damage because of a range of issues, and have hired marketing consultants to determine whether a direct association with the games would hurt their image.
• Global scientists who have collaborated with Chinese peers for decades are now concerned about future projects amid growing animosity between Beijing and other governments about the origin of the coronavirus.
• Big Read piece on BIIB’s Alzheimer’s drug says “After years of false dawns, the approval of a new drug this week has given hope to patients with the disease, but some experts are critical of the high cost of the drug, and question how well it works.”
• Lex Column: Didi Chuxing’s investments in deliveries and electric vehicles will remain a cash drain, and it may need to lower its targeted IPO valuation accordingly; Many Japanese stocks trade at a discount to global peers because of bad governance, and Toshiba continues to be one of them; Signa Sports United’s merger with US-based SPAC Yucaipa is astute, and its e-commerce credential are respectable.
• Comment: Cryptocurrencies are here to stay, but to counter ransomware attacks, companies must develop robust know-your-customer and anti-money laundering laws fit for the digital age, says Alex Younger.

NEW YORK POST
Saturday
• “Congressional lawmakers are targeting tech giants over antitrust concerns—and the proposed legislation could force them to overhaul or even break up their business empires.”
• Pre-auction bidding for a slot on AMZN founder Jeff Bezos’ July 20 Blue Origin space flight closed Thursday at nearly $5M, according to the space company’s website.
Sunday
• A study that surveyed the remote work habits of 10,000 employees at an Asian technology company between April 2019 and August 2020, found a 20 percent decrease in output despite the fact workers put in more hours at home.
• Just hours after El Salvador’s legislature made the country the first to accept Bitcoin as legal tender, president Nayib Bukele said a state-owned geothermal electric company will harness volcanic energy to mine the cryptocurrency.

WSJ : High-Speed Trader Virtu Fires Back at Critics Amid Meme-Stock Frenzy

High-Speed Trader Virtu Fires Back at Critics Amid Meme-Stock Frenzy
Scrutiny of GameStop, AMC stock surges has put pressure on firm run by CEO Douglas Cifu

High-speed trader Virtu Financial Inc. VIRT -0.27% is pushing back against critics in Washington who say the stock market is rigged against small investors.

Virtu’s business of executing individual investors’ orders is facing scrutiny from lawmakers and regulators following the surge in shares of meme stocks like AMC Entertainment Holdings Inc. and GameStop Corp.

Last week, the new chairman of the Securities and Exchange Commission, Gary Gensler, said he has asked SEC staff to explore changes to the rules governing how investors’ orders are handled. The review will include a practice known as payment for order flow, in which brokerages send many of their customers’ orders to trading firms in exchange for cash payments. Virtu’s stock sold off sharply after Mr. Gensler’s remarks.

Payment for order flow has existed for decades and has come under scrutiny before. But it received fresh attention after the wild volatility in GameStop shares in January. At one congressional hearing in February, Rep. Sean Casten (D., Ill.) referred to Robinhood Markets Inc.’s practice of sending orders to high-speed traders as “a conduit to feed fish to sharks.”

Firms such as Robinhood and Virtu say payment for order flow is misunderstood. They say small investors benefit from the practice because it results in better prices than they would get at public exchanges like the New York Stock Exchange and the Nasdaq Stock Market. Collectively, that saves investors billions of dollars a year, industry data show.

Payment for order flow has also made it possible for brokerages to provide zero-commission trading. If the practice were banned, it is unclear whether brokerages like Robinhood could still let investors trade stocks and options without charging commissions.

Virtu Chief Executive Douglas Cifu has been one of the most vocal defenders of payment for order flow. In March, upset by comments that CNBC “Squawk Box” host Andrew Ross Sorkin made about how high-speed traders profited from investors’ orders, Mr. Cifu tweeted his phone number at Mr. Sorkin and said: “Let me know when you want to learn how markets work.” Soon afterward, the CEO went on the show to discuss payment for order flow with Mr. Sorkin.

Following the GameStop trading frenzy, the SEC is expected to take a fresh look at payment for order flow, a decades-old practice that is at the heart of how commission-free trading works. WSJ explains what it is, and why critics say it’s bad for investors. Illustration: Jacob Reynolds/WSJ
In an interview, Mr. Cifu warned that banning the practice and requiring that individual investors’ orders be sent to exchanges would harm small investors. “Retail investors would get a much, much worse experience,” he told The Wall Street Journal.

Firms like Virtu, known in the trading business as wholesalers, make money from investors by filling their orders throughout the day and collecting a small spread between the buying and selling price of each stock. Under SEC rules, they can’t fill the trades at prices worse than the best available price on exchanges—a benchmark known as the national best bid or offer, or NBBO.

Because individuals tend to make small trades, wholesalers can trade against them knowing the individuals aren’t likely to push stock prices up or down, the way that institutional investors can move a stock through heavy buying or selling. That allows wholesalers to make more consistent profits when filling small investors’ orders than when trading on exchanges—a benefit they are willing to pay brokers for, in the form of payment for order flow.

Meanwhile, small investors can benefit from the arrangement by getting prices better than the NBBO, often by just a fraction of a penny a share.


The resulting savings to the investor are known as “price improvement.” In a report released on Thursday, Virtu said standard analyses underestimate the degree to which small investors benefit from having their orders filled by wholesalers.

Using a broader measure of price improvement than the one usually used, Virtu said it saved investors just over $3 billion on their stock trades in 2020. By comparison, data disclosed by wholesalers under SEC reporting rules shows Virtu provided around $950 million worth of price improvement last year.

The difference was largely because of how Virtu calculated the savings when an investor does a trade in a larger size than what’s publicly displayed on exchanges. For instance, suppose that 200 shares of Apple Inc. are available on exchanges at the national-best-offer price, and an investor buys 500 shares of the stock from Virtu at a slightly lower price.

In that scenario, Virtu’s methodology counts the savings based on how much it would cost to buy all 500 shares using price quotes on exchanges—not just at the national best offer, a price at which only 200 shares are being quoted, but at the higher prices where the remaining 300 shares would be filled.

Critics were unconvinced by Virtu’s analysis, calling it self-serving. Payment for order flow is fundamentally flawed because it poses a conflict of interest for brokers, said Tyler Gellasch, executive director of Healthy Markets Association, a trade group for institutional investors.

“There’s a simple question that every investor needs to ask, and that’s whether their broker is trying to get them the best prices or maximize their own profits,” Mr. Gellasch said.

Virtu is the second-largest wholesaler in the U.S. stock market by volume, handling between 25% to 30% of individual investors’ equities order flow, and it paid more than $300 million for order flow last year, according to Bloomberg Intelligence.

Other major wholesalers include Citadel Securities, which has the largest market share, and Susquehanna International Group LLP. Virtu doesn’t break out how much it makes from trading against small investors, but the meme-stock frenzy has helped lift the company’s stock 15% year-to-date.

Mr. Cifu acknowledged that payment for order flow poses a conflict of interest for brokerages, but he said the conflict was already being managed through SEC rules. The regulator requires brokerages to publicly disclose their payment-for-order-flow practices. Brokerages also have a duty to seek best execution for their customers, and some have been fined for failing to fulfill that obligation when routing orders.

The SEC’s review will eventually confirm that the stock market works well for small investors, Mr. Cifu predicted.

“I am so confident in the value that we, Citadel and Susquehanna in partnership with these retail brokers have provided to the ecosystem,” he said, “that any right-minded person looking at this and looking at the data will conclude, ‘Man, this is a great trading system. This is the envy of the world.’”

WSJ : Rare-Earth Mines Need Faster Permitting

Rare-Earth Mines Need Faster Permitting
Setting timelines for regulatory agencies’ reviews and permitting decisions and limiting mining opponents’ use of administrative appeals and litigation to challenge permits would shave years off the permitting process.

Mark Mills’s dismissal of American mines as “irrelevant” in providing the critical minerals needed for clean energy is the wrong choice for the environment (Letters, June 1). Shipping critical minerals from across the globe substantially increases their carbon footprint, which makes no sense when we have domestic sources of many critical minerals that can be developed using the highest environmental and safety standards.

His rationale—“new mines in America couldn’t possibly be opened fast enough”—reflects the unreasonable length of time it takes to permit new U.S. mines. Instead of throwing up our hands and saying, “We just can’t do this fast enough to help solve the problem,” Americans should demand that critical minerals come from U.S. mines whenever possible because that is the best way to protect the environment and miners and minimize carbon emissions.

Appeals and litigation are currently threatening and delaying U.S. critical-minerals mining projects for lithium, copper, antimony and cobalt. The Biden administration should declare a critical-minerals emergency and mandate immediate changes to the glacially paced and litigious permitting process.

Setting timelines for regulatory agencies’ reviews and permitting decisions and limiting mining opponents’ use of administrative appeals and litigation to challenge permits would shave years off the permitting process. These permit streamlining measures can be achieved without relaxing the stringent environmental protection and worker health and safety standards with which U.S. mines must comply.