Hi all! When I read technical specs of market data feeds, I keep encountering the terms "displayable order" and "non-displayable order". Can anyone explain me the difference please? Thx
I know the term "displayed/non-displayed" liquidity, from various books. If you post a limit order on an exchange, everyone else can see it, and as such is displayed. Non-displayed liquidity is everything else, and can mean different things. For example iceberg orders, where only part of the size is visible, or orders posted on darkpools/ATS that dont dont display, or crossing networks with scheduled acutions, or even just human traders that didnt post an order but are willing to trade at a certain price.
I think displayable/non-displayable order is different from regular/hidden order. I think when an order is received but has no counterpart, is stays in the order book, and it appears in the market data feed (under the form of a "add order" message) so that participant can include it in their own order book. It is a displayable order. When a corresponding counterpart order is received, both orders are immediately executed. So the second order won't appear in the market data feed as it is already executed. It is a non-displayable order. That's why when an execution occurs, the following messages appear in the market data feed: - an "order executed" message, corresponding to the execution of the first order (that was displayable) - as the second order was non-displayable, there was no "add order" message, so there can not be any "order executed" message. Instead there is a "trade" message, without order id, to denote the execution of the second order (that was non-displayable) Am I right or wrong? Thx