a question for Magna-Re:ET arca chat

Discussion in 'Order Execution' started by limbo, May 5, 2002.

  1. limbo


    Magna was your questions regarding arca fills(chat) ever answered? Also could u please give your ideas on redi fills-which is better-regarding quickness-and scoops/sweeps-much thx-limbo
  2. Magna

    Magna Administrator

    Hi limbo,

    I use ARCA to route alot of my orders, and find sweeps work well for both entering and exiting positions. It will accept a limit short order at the inside bid on a downtick by adding .01 to the bid (which I like, as Cyber used to always reject the order on a downtick forcing me to click OK, then resubmit the order). However, whether or not you get filled depends on whether the stock upticks before dropping. A fairly effective way around this is to do a sweep (how far depends on your willingness to chase), placing the short order below the inside bid. Again, you won't be filled if the stock drops below your number before upticking, but if it upticks at any point above your number ARCA will attempt to sweep to your limit.

    As to REDI I can't help you there. Although I've heard very good things about their speed, the ECN add-on fees are about double that of ARCA, so I stay with the latter if I want an ECN to "work" my order as ARCA has been very fast in my experience. I also use ISLD quite a bit when I am offering out or bidding, as they are cheaper than ARCA.

    Hope this helps.
  3. I received a call from the genleman from ARCA, who was quite insistent that my inquiry about "fades" was incorrect. I asked who the CEO was, and he told me that he wouldn't talk to me.

    Well, of course he answered the phone right away, and we both got on our computers and compared entries, bids, offers, etc. via ARCA.

    We found out that I was correct (big wow), but more importantly we found that there is a flaw in the system, which in now being corrected.

    He would see a bid with (i.e.) "arca hrzg" I would simply see "ARCA" - I would hit the bid, and it would fade (obviously MM's leave non current bids up from time to time and don't have to honor them). We did this for some time, and he is working on it from his end, and I have Redi working on it from our end.

    Technology changes, and we need traders to have input, real time, real trading, to make sure all is working well.

    My respects to ARCA and I hope to see the changes soon.

  4. Because I sure don't.

    And for the millionth time, a MM cannot leave a "non-current" qupte up and not honor it if he is executed against via SS. It is automatic and he doesn't know it happened until after the fact. COnsidering that a MM cannot keep himself out of the SOES queue when at the inside price, I fail to see how any MM could leave a "non-current" ie "real" (not stuck) quote in todays market.

    SO please explain what you are referring to in your post and elaborate on this supposed "flaw" in the ARCA system. Thanks.
  5. Magna

    Magna Administrator


    I realized later that I didn't exactly answer your question! (doh). I got this from Mike at Terranova:

    I hope that this is accurate. While it contradicts information that I got on two separate occasions from Order-Entry tech support at Realtick, it makes sense as that's the way it should be!
  6. limbo


    Being a bit thickheaded I have to think on this but I thank you Magna for this and all the other great info you supply on this site. Goin out but may have some Q's for u later. limbo
  7. The question came up about ARCA bids and offers fading when hit. This is happening a lot with our traders, so we investigated it a bit. 4 months ago I was told that they (ARCA) did, in fact have MM's using the ARCA symbol, and therefor the bids and offers could or could not be "real."

    After testing, we found the exact same thing, that some users will only see "ARCA" instead of the "ARCA=Hrzg" for example...ecn + MM.

    This is being addressed and hopefully will solve the problem of thinking you are hitting a bid on the ECN, when in fact you are hoping a MM will honor theirs.