Can a ECN execution be worst than NBBO ?

Discussion in 'Order Execution' started by thepalatinezoom4, Aug 29, 2020.

  1. Some ECN dont route orders to another market centers. Generally brokers dont allow orders worst than bid ask price, but is possible ?
     
  2. ajacobson

    ajacobson

    DEVIL IS IN THE DETAILS -flashing quotes, fast market declared, at the opening just to name a few. You may also be owed a trade correction depending on the circumstances.
    There is also a reg. saying if you make lit markets - your dark markets need to reflect those. The devil is still in the details.
     
    Last edited: Aug 29, 2020
  3. Robert Morse

    Robert Morse Sponsor

  4. Yes, it happens all the time. I make hundreds trades with stocks and options daily and see stable non fast moving stocks and options pass by the Bid x Ask. I use to keep in touch with ARCA founder at the beginning because of running into all types of issues or locked-markets because we wanted the rebate or complaints the ECN went above several layers.