AMEX Thievery

Discussion in 'Order Execution' started by NYSE Trader, Sep 23, 2002.

  1. Has anyone had this experience with an AMEX etf specialist: I put in an order on SPY 5-10c under the current bid, the e-minis turn down, so I cancel the order, the specialist holds and holds until the futures and made a strong move down, then fills me AT my limit price which is 10-20c away from his published offer (no price improvement). Its absolutely criminal that they get away with this...on NYSE some specialists can be holders, but your fill will generally not occur outside the bid/ask spread. Are they able to get away with this? Has anyone been successful in busting a trade like this?
  2. it is normal. just like that.
    never ever route to AMEX. IB already took them out of their
    routing. I do not think such an event can be declared
    as "mistrade".
  3. saschabr,

    Thanks for your good news. I was waiting for this a long time. When IB start doing this? I missed that IB anouncment and I would like to read their formal arguments for educational purposes.

  4. shark,

    i am not an IB customer for myself. i heard this from a friend
    of mine who uses them heavily. sorry, can't give you a formal

  5. def

    def Sponsor

    IB doesn't generally announce changes to its smart routing as it is proprietary and will change with the markets. I can't speak the company line here as I am not completely familiar with our US policies. However, in general if you read the comments on these boards about AMEX execution, it should not be surprising that a firm that believes in electronic markets and level playing fields would want to avoid routing to that exchange.
  6. little remark: not all AMEX spec'ies are thieves. particularly,
    some are honest guys. however, this only affects very low
    volume stocks which are listed on AMEX exclusively... yes, some
    are still there...
  7. def

    def Sponsor

    I'll second that as well.
  8. tntneo

    tntneo Moderator

    yep, all the others do not maintain a fair market. no doubt about it. it's even easy to demonstrate.
    maybe one day they will be investigated and fined (it happened in the past for NYSE).
    but for now, I understand anyone avoiding AMEX.

    low volume stocks on NYSE and AMEX are surprisingly fair.

  9. The problem is that the AMEX's policies allow these "games" to happen. Thus, if there is no penalties for pursuing this type of behavior, some specialists will take advantage of the system to their benefit.
  10. you guys should really poke around the AMEX web site - it's pretty funny!!

    take this little excerpt I found -

    Exchange Fee Schedule
    Nasdaq-Listed Securities on the Amex

    Customer: $0.15 per 100 shares
    Specialists (for principal trades): $0.10 per 100 shares
    Amex floor traders: $0.15 per 100 shares
    Competing dealers: $0.15 per 100 shares

    Cross Trade $50 Cap: The transaction charge for any single trade where the buy and sell clearing members are the same will not exceed $50.00 per side.

    Specialists have agreed not to charge commissions.
    There will be a fee holiday for all transactions through the end of September 2002.
    Exchange fees for specialists are postponed indefinitely.

    LOL...the last line is too much...
    #10     Sep 23, 2002