I wonder if IB will include AMEX routing on BEST execution for Nasdaq NMS stocks. If so, it could get real slow. Amex's Plan for New Listings Will Tread Upon Nasdaq Turf Tue Apr 9, 1:54 AM ET The American Stock Exchange is planning to begin trading 120 of the top Nasdaq Stock Market-listed companies on its own trading floor, Tuesday's Wall Street Journal reported. Though Amex lists and trades the Nasdaq-100 Index Tracking Stock -- popularly known as the QQQ, after its trading symbol -- this is the first full-scale move by the Amex into Nasdaq listing territory. The Amex is trying to increase revenue at the expense of its corporate sibling. The Amex maneuver marks yet another twist in its increasingly awkward relationship with Nasdaq. Both markets are owned by the National Association of Securities Dealers. Nasdaq has spent the past several years orchestrating a spinoff from the NASD. And as Amex hunts for an exit strategy of its own, the two markets have returned to their former roles as rivals for listing stocks and attracting stock order flow. A Nasdaq spokesman declined to comment on the Amex initiative. Under the Amex move, the stocks to be traded include the components of the Nasdaq 100, as well as 20 other frequently traded issues. Amex hopes to begin the new trading, which makes use of a regulatory option allowing markets to trade securities they don't list, on May 20 . The Amex is attempting to take advantage of a difficult time for Nasdaq traders, many of whom have seen their revenue erode since the implementation last spring of decimalized trading of U.S. stocks. That change diminished the gap between buy and sell orders for a stock at a given time, thus shrinking the pool from which traders capture revenue. Wall Street Journal Staff Reporter Kate Kelly contributed to this report.
I'm still upset that IB eliminated BEST_ECN. There reasons for doing so are very flimsy. So far, on liquid NASDAQ names, I have noticed more delays and missed fills using BEST than BEST_ECN. Unfortunately, I don't have hard evidence of the cause(s). I usually use BEST limit orders, and I had lots of problems trying to entering orders today. I'm not sure what the root cause of the problems were (quote delay, BEST routing, etc..). I had several situations where I saw liquidity on L2, and I entered a limit order to take it out, and then the order just hung, and then 4-5 seconds later the market moved away, and I had to enter another order. At this point, I would hesitate to recommend IB for shortterm trading ( < 10 minutes horizon). I am using my other brokers more and more lately, because IB is not giving me a warmy and fuzzy feeling anymore. Fleance IB JTWS Bug & Feature List http://www.geocities.com/afleance/jtws_feedback.html
fleance you say you are using your other brokers - more and more - but would you say you are doing taking exactly the same trades with these other brokers as you try to do with IB - and that you find they work with the other brokers and not IB i guess the reason you always try IB first - is because of IB'scomm structure
Uhh...there's another marketplace that some of us enjoy trading. NYSE. They don't have superfraud or supersoes or superfreak or whatever they call it now. BEST_ECN is clearly an added bonus for listed stocks b/c of obvious increased liquidity and instant fills. If you don't want to reinstate BEST_ECN, how about making a BEST_BUT_NOT_NYSE option???
I was surprised when the ability to select the routing destination was eliminated from the TWS when you use the API. You now must always use BEST when using the API. If this was necessary for API trades does it stand to reason that eliminating direct routing selection from the TWS altogether is only a matter of time? Will BEST end up being the only choice at IB? Why is this direction being taken? How can you attract high frequency traders moving in this direction? Is it in anticipation of the new SEC rules and SuperMontage? Is it beneficial for Timber Hill to compete with MM's instead of ECN's? Where are we headed and what can we expect?