4 decimal print

Discussion in 'Order Execution' started by reg4login, Feb 12, 2009.

  1. reg4login

    reg4login

    How can I trade at 1.8075 and 1.8099 ? Mkt "D"
     
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  2. Tide31

    Tide31

    I've gotten prints like this. I always thought it had something to do with it being a 'net' trade either for you or other side after ecn fee/rebate, but I could be wrong. Mine normally are not tacked onto the price and show up on my run after.
     
  3. I see these all the time. I spent a lot of time trying to figure it out, but haven’t. A couple of years ago, the SEC implemented the sub-penny rule. Everything over $1 had to trade in full penny’s, no $10.0599 trades. Every platform I’ve used rejects these orders, but I still see them. They may be late trades or adjustments or something like that, but I don’t think so. Come to think about it. A few times I placed a market order on EWJ and got filled at something like $9.875, in between the bid and ask. It happened at least 3 times. If you could place sub penny trades, it would be the easiest thing in the world. Sign up with a prop firm with super low commissions. The when the B/A on something like XLF is $9.14 X $9.15, place a buy and sell order at $9.1401 and 9.1499. Probably 95 % of the time you’ll get filled on both, you’ll always be at the front of the que. You’ll make 99 cents, plus the rebates. Do that a couple of hundred times a day and you’ll have a lot of money. But that’s exactly why they stopped it. Anybody else have any experience with this?
     
  4. I always figured it was from odd lots being executed a penny above.

    For example: You buy 100 shares, and there are 50 shares offered at 20.50 and 2000 shares at 20.51. You get filled 50 shares at 20.50 and 50 share at 20.51, thus your fill is 100 shares at 20.5050.

    I have no idea if this is correct.

    I also thought some dark pools had sub penny shaving?
     
  5. Maybe, but I don’t think so. I have traded with Sterling trader. Partial fills happen all the time. You probably don’t notice it. Most of the time the 2 fills are done at the same second. For instance you place a buy at the bid for 200 shares. A few seconds later you get a fill. Sterling shows that you actually got filled on 100 shares twice. It was 2 different orders that filled your one. So technically it was 2 different sales, so I would think the time and sales would record the 2 different trades, but I don’t know. I would lean towards saying they are legitimate trades. Otherwise how come you always see them at 10.1401 or 10.1499?

    I don’t know much about dark pools. Are those trades reported on the time and sales? I have looked around and there isn’t much about sub penny trading. Just that the sec banned it except for the QQQQ. But I haven’t been able to place them on that either. But like I said I got filled at 9.845 more than once when I tried to hit the ask. I don’t know why.
     
  6. reg4login wrote on:

    02-12-09 03:24 PM

    How can I trade at 1.8075 and 1.8099 ? Mkt "D"
    ----------------------------------------------------------------------

    Market "D" is the FINRA Alternative Display Facility (ADFN)
    which is the system used by registered Market Makers to
    report in house crossed trades.

    Only MMs can trade at four decimals on stocks priced at $1.00 or more per share. The public cannot.