Does IB support SuperSOES ? ?

Discussion in 'Interactive Brokers' started by hsanson, Jul 25, 2001.

  1. hsanson

    hsanson

    I wonder if IB's SOES execution is already SuperSOES on the stocks that are already supporting SuperSOES ?

    Tia

    hsanson
     
    #1     Jul 25, 2001
    Share
  2. def

    def Sponsor

    Yes, here are the details:

    SuperSoes
    The NASDAQ is introducing a new version of its Small Order Execution System (SOES), called SuperSoes. SuperSoes will be the NASDAQ's primary order routing system and will provide automatic execution for:

    1) National Market Securities only
    2) Order size under 1,000,000 shares
    3) Agency and proprietary orders
    4) Odd-lots

    The following rules apply to SuperSoes:

    1) Orders may now be split
    2) Allowed interval between trades reduced to zero seconds
    3) No directed orders

    The NASDAQ will gradually phase in all National Market Securities on SuperSoes during the next few months. Once a security is available on SuperSoes, IB will route all orders for that security to SuperSoes, rather than Soes or SelectNet.

    Non-SuperSoes Orders

    For securities not listed on SuperSoes, IB will continue to route to SelectNet or Soes based on the qualifying rules that were in effect prior to the launch of SuperSoes.


     
    #2     Jul 25, 2001
    Share
  3. huby

    huby

    Def, (or anyone else who knows)

    I have a quick question. You said in your post:

    "SuperSoes will be the NASDAQ's primary order routing system".

    Currently on IB's TWS screen, when you enter a stock and pick the order route, you can either choose soes or nasdaq (among others). How will this look in the future? Will the soes option just dissapear since you say "Nasdaq" will be routing through supersoes? Or will it just read supersoes instead of soes? I may be misinterpreting what you said. If Nasdaq is going to route their orders through supersoes anyway, it would seem to me that we would just route to nasdaq and wouldn't even need the soes/supersoes option.

    Also, with supersoes can we expect IB's "best" feature to be drastically improved? Currently there is nothing best about it. It's turtle slow. Best ecn is much better for now but it would be great to be able to take advantage of mm's posted bids/asks.

    If I understand it correctly, "best" first tries to hit the best market maker quote and then moves to the ecn's. And best ecn, doesn't deal with mm's at all. Is this correct??
     
    #3     Jul 25, 2001
    Share
  4. def

    def Sponsor

    huby,
    I don't know what the route choices on the menu will be. I assume if you choose SOES - it will route only to supersoes. If you choose NASDAQ it will most likely end up at supersoes if it is supersoes eligible.

    BEST does not necessarily go to a market maker. It goes to the best inside price. The problem with best is that market makers often have the inside price and hold onto orders. Assuming supersoes solves this problem, best should become as good and hopefully better than best_ecn. best_ecn only routes to ecns and thus market makers do not get their hands on the order.
     
    #4     Jul 25, 2001
    Share
  5. huby

    huby

    Thanks a lot Def,

    Hopefully you're right about BEST. That would be awesome! I guess we'll find out next Monday. Keep us posted if you learn anything new regarding this.
     
    #5     Jul 25, 2001
    Share
  6. def

    def Sponsor

    On the US routing you may find out before me on how well it works. Word is that we are optimistic.

    On another note: globex market depth is available as of today for futures (es, nq, etc). You can execute from the market depth as well (ditto for stocks). just click on the appropriate price/level - the rest is self-explanatory.
     
    #6     Jul 25, 2001
    Share