i only trade nyse listed and always use dot or/and direct +. so far never attempted to send order to ecns due to unfamiliarity and my satisfaction with dot (although they sometimes screw your order). Can somebody help to explain what's the benefits of using ecns vs dots to trade nyse listed stocks? with new rules on direct plus, i believes more volume will go to dots since direct plus is for Dot order thanks
If you want to trade a listed stock on an ECN or ATS and there is no de minimis trade through exemption, than the order will have to be matched with the best price in the market place. Meaning... you send an order to ARCA to sell 100 sh. and the best bid is on the NYSE. ARCA must use the ITS systems to transmit their order to the NYSE for execution. ITS = pop-up window with a time (usually 15-30 seconds) until the order is executed, rejected, or timed-out. On certain ETFs (QQQ etc...) the .03 de minimis rule is in effect and can execute through the best price in favor of speed of execution.
Lately, Brut has been REALLY slow. Sometimes it completely freezes up. Brut is also the last bastion on shaving. Sub 5 dollar stock at least. Well, inet allows to shave sub dollar.... I bet inet will loose a lot of marketshare to brut from their liquidity traders and small-time scalpers. (those who used to shave island). Oh well. Arca, on the otherhand, right now is very liquid. You have a 75% greater chance of getting filled on it then on Brut. However, if you are hitting in, hitting brut is better: its a bit cheaper, plus someone couldve been shaving, so you would get a better price!