Discussion in 'Order Execution' started by Toonces, Oct 20, 2005.

  1. Toonces


    We had a discussion about this a few months ago...I don't wish to go over old business. I know that if ARCA is sitting on the ask, for example, and I place an INET order to buy at that price, my trade might not execute against the ARCA ask.

    But let's look at the opposite example. Let's say that on the ask are: BTRD 1000 shares, BRUT 1000 shares, INET 1000 shares, all asking $20. No market makers. I place an ARCA order to buy 3000 shares at $20, and I am first in line. Is there any situation in which I would not get an execution for all 3000 shares immediately?

    In other words, if my broker's 'smart' order entry algorithm sucks, and I want to either lift the offer or hit the bid, can I just use ARCA every time?
  2. Htrader

    Htrader Guest

    Yes, but only if you enable arca's smart routing feature when you send the order, otherwise it just gets placed on the arca book only. Most brokers usually have a toggle that will enable you to turn on/off the smart routing feature of arca.

    Some brokers though, like IB, do not allow this.
  3. arca has the possibility to do that, but the broker needs to have the funcionality "switched on"
  4. if you go ARCA and get preferenced out to one of the other ECN's, you'll get hit with an unnecessary .004 per share charge.

    like the others said, turn off your preferencing (PNP), and you'll at least get the rebate to execute at the same price.
  5. mnx


    at my firm if I use an arca PNP order it will get rejected if it crosses/locks the market (at least on listed stocks...)

  6. alanm


    Not if he doesn't get filled, which I imagine is the reason for the question.

    If you give your broker's auto-router an order to buy 3000 at 20, and there are plenty of shares firm on the offer at that price, and they don't route there and take them, you really need to find out why instead of paying ARCA another $0.004 ($0.001 for listed) to go take them. My guess is that your quote feed, the broker's, or both is stale at the time. They should be able to trace this.

  7. I thought ARCA fee for removing liquidity was $.003....or is it different if you are preferenced out to another ECN?
  8. alanm