Confusion Regarding ECN's

Discussion in 'Order Execution' started by Darshan, Aug 4, 2008.

  1. Darshan


    This is a question I pose to all my fellow Level II traders out there...

    I used to bid/offer with hidden ISLD but was unable to get filled unless I was in front of an ISLD order. I spoke to a representative at my brokerage frim and he advised me to use RASH orders. These are essentially proactive hidden ISLD. From what I gather this is your best option if you are a scalper trader looking to get edge and your best option to get filled if your hiding your order.

    The weird thing is I will be bidding and offering in front of orders and I see the prints going off through my price? I thought RASH orders where supposed to have price priority?

    Anyways there is a bit of confusion on my part if anyone can help enlighten me a bit on this matter it would be greatly appreciated!!!

    Thanks and best of luck!
  2. Don't hide your orders and you will get filled. Hidden orders are last in line for priority. Also they can't be routed to by other market centers for Reg NMS.
  3. Darshan


    That makes sense if your at the same price but...

    Even if you have better price priority? That's my confusion?
  4. You will only get filled on a hidden order if someone else tries to execute through ISLAND. If you don't hide your order ARCA,BATS EDGEX and all the other centers will fill against you. How large are your orders that you are trying to hide?
  5. Darshan


    My orders are very small 100-300 lots
  6. With orders that small there is no reason to hide them.
  7. There is no trade-through protection for hidden orders.

    NMS protection only applies for displayed markets. Hidden orders have to execute inside the NBBO... but they only have price priority within the ECN were they are sitting. [they're not part of the NBBO]
  8. You're hiding your oders trading 100-300 shares. Come on man.
  9. bespoke


    lol, too funny
  10. hey... 100-300 is considered big volume in some markets... the CME...

    #10     Aug 5, 2008