No different from hidden orders, mid-pegs, or just (legit) dark pools. What price will you send to the auction - mid of NBBO?
the match usually will be inside nbbo, it makes anyone who buys at bid and immediately sells on Cboe to make a tiny profit and vice versus for selling at the ask. I would say it makes hft easier to cash out since in current situation, shares bought at bid has to be sold at ask which may not be realized
its completely different than hidden orders. nothing is hidden. this is great news. hft is having trouble anyway lately due to competition and speeds are to the point where random electrical jitter decides the winner n loser in hft world. its also not a midpoint price either. its a randomized matched auction in a 10th of a second for best price and wont allow gaming with cancels. hft is using gtc orders months out to the tune of millions of orders to keep time price priority on the book they merely cancel over qty.
K, got it, thanks. But there’s big difference - on eBay you can bid something up risk free. To do this in liquid markets you actually have to lift offers.
Speaking of this...Anyone remember dealdash.com? I told ya that shit was going to end. Craptastic "shill-bidding" site. I hope they burn in hell.
How is it not different? Everything in the continuous space gets stepped on. I see it all the time, 1 share executes at my preferred price and then moves away. Hidden orders are last in queue to execute, that's a major drawback, so if part of my hidden executes, they will take note and send a visible order which will take priority over me.
How will this affect comissions and fees? Brokers said they pass it on to customers/improve their services
This will get gamed sure as sugar. There are very clever traders at DRW, Citadel, Goldman who are already scheming... They live to exploit the peons working at the trading exchanges.