Direct Access Firms & Trading Mechanics

Discussion in 'Retail Brokers' started by Seanote, Mar 4, 2002.

  1. ______________________-

    No, they have access to almost all of the ECN's, if my memory serves me correctly. The appeal of the ETF's (to me) is that you CAN short on a downtick. Or am I missing something? Woudn't be the first time. :confused:
    #21     Mar 5, 2002
    #22     Mar 5, 2002
  3. Seanote

    Seanote Guest

    Your right.....I scanned your message to quick and thought it read ECNs...Vinny is right on the ETFs.
    #23     Mar 5, 2002
  4. I'm going to continue this thread by starting a new one in the direct access broker section. I'll use the name of the brokerage and hopefully someone who trades there will see it and help me better understand this policy.

    Many thanks,
    #24     Mar 5, 2002
  5. Seanote

    Seanote Guest

    Later this evening I will start 1 or 2 new threads in the Trading Forum and will begin talking about trading strategies and technical analysis like some of us mentioned earlier. I'll start with playing the gaps and some TA and see where that takes us.
    #25     Mar 5, 2002
  6. So you are referring to some sort of order routing algorithim unique to a particular firm whereby the firm has direct connections to (all) ECN's and then will seek liquidity with each and all via a pre-programmed sequence/ this what you mean by "smart" ECN?

    Even when say INCA and a MM are at the inside -and you know you can get an instant fill via SS-youwould still route to INCA with its likely higher cost?

    ARCA will now only route to a MM via SUperSOES and only uses SNET for ECN's with which it does not have a direct connection

    Practically every firm I have seen charges at least .025 per share for ISLD (if taking liquidity)....tell us some of the free ones :)

    Generally I agree with your posting in finding liquidity in fast stocks. I do have a "smart" ECN as you called it (all ECN volume is aggragated into one pool of liquidity for single click/hot key access), and use it more often than not. However we also know that in fast markets, the ECN volume is not as readily available, and I will usually put out a SOES order (Delta order as you called it) simultaneously and let it cook while I am going for the fleeting ECN volume. If I get filled by the ECN first, I cancel the SOES. WOrst case, I get a double fill and decide quickly whether I want to keep the extra shares.
    #26     Mar 5, 2002
  7. TNO-Mike


    Seanote, I just wanted to make a quick correction on your earlier post: ARCA used to route to MM's via Selectnet prior to the integration of SuperSoes. Today, if they route to a MM they use SuperSoes to route orders to them (For Small Cap they still use SelectNet, b/c that's all that's available for on those stocks). Market Makers will use SelectNet to come to ARCA, but ARCA using SuperSoes to direct orders to them [General Rule is orders are SOESED out and SelectNeted in]. As for how ARCA routes to ECNs, they have direct connections to many of them including ISLD, INCA, BTRD and REDI.
    #27     Mar 5, 2002
  8. TNO-Mike-too late I already corrected him....:)

    You say "many of them and then list 4 out of 9....are there other ECN's with which ARCA has direct connections at this point in time?
    #28     Mar 5, 2002
  9. In case you did not see I responded to your question on PointDirex on that thread
    #29     Mar 5, 2002
  10. TNO-Mike


    I was actually on the phone with ARCA when I posted, just to clarify. I was laughing after I saw you had already posted. The ones I listed, which are the most liquid ECNs they have direct links, your earlier post about using SNET to route to the others is correct.

    #30     Mar 5, 2002