I think Spec is MUCH closer to reality... then NYOBScalper. > they do it very seldom since they got audited > and fines are pretty big In reality... this is not a big factor. The NYSE "audits" itself... Buddies "audit" their buddies... Then they go out to lunch together with their families. Also... If you read NYSE Disciplinary Actions for regulatory infractions... The NYSE uses a PERCENTAGE SYSTEM to guage compliance... For example... < 3% backing away or front-running is OK... > 3% results in a relatively small fine (I'm just using 3% as an example). In reality... This means you can get cheated on any given order... Or the Specialist can pick on one individual... and cheat him regularily... As long as TOTAL CHEATING is < 3% of orders. Also... Only Major Players can COMPLAIN about being cheated. I was a small US broker-dealer for 7 years... And my Clearing Firm COULD NOT CARE LESS if the NYSE cheated me. Now I do 500 trades/day thru IB... And IB COULD NOT CARE LESS if the NYSE cheats me... And there is NO WAY to get accurate execution information... Or file a complaint in any way. You will just get a Customer Service Drone... Who will PRETEND not to know what NBBO means. Honestly... I have no idea how people can EVEN DETECT cheating... Especially in large cap stocks that are fragmented over 5-10 major liquidity centers. I trade low volume stocks... so cheating is far more evident... I might see something very suspicious 5-10 times/day... But absolutely NOTHING you can do. BOTTOM LINE, IMO You will be cheated 5-10% of the time... By both your broker's Routing Algorithm and by the Exchanges... Usually for a penny or two... And your profit margins MUST be large enough... To EASILY absorb such "normal malfeasance".
HoundDog: I can only say that in an average day, I make 50 roundtrips on the NYSE, and enter and exit primarily with NYSE market orders. I am profitable, and I have been observing every tick every day since the beginning of the hybrid system. When electronic execution isn't turned off, frontrunning isn't possible, and the situations that it gets turned off in aren't normal trading conditions so they need to be given special consideration in one's trading system/method anyway. I am totally sure of this. I know how my markets work, through overwhelming evidence and experience. Believe what you wish, and watch for yourself to see that what I said is indisputably true. Or don't. But at least I tried to help. Good day.