Which part of my post are you referring to exactly when you say "not the case"? Also if you have any links or experiences to confirm, please post them... I finally found a link to confirm that INET hidden orders lose priority to INET displayed orders, here it is: "IF THE ORDER IS CONVERTED TO NON-DISPLAY, DOES THAT IMPACT ITS PRIORITY ON THE INET BOOK? Yes. Non-displayed orders lose priority to displayed orders. As a result, if an order is changed to a non-displayed order to avoid locking or crossing another marketplace and new orders are subsequently accepted for display at the same price, the non-displayed order will lose priority to the displayed order even though the non-displayed order was entered first." http://www.nasdaqtrader.com/subscribers/emailarchive/2004/20040610_a.stm
The link is for QQQ, SPY and DIA. I am referring to stock. I do not have any link to prove my words as I am speading from my experience. If I am wrong please someone correct me
Well, I only learned about this hidden order priority thing very recently too, so i could be wrong, but... For Inet, here's a paper which states that "Execution priority follows price, visibility and time. All visible quantities at a price are executed before any hidden quantities are executed." http://www.ruf.rice.edu/~jgsfss/HS4.pdf So it seems that as with EDGX, it applies to reserve orders on INET too, not just hidden orders. BATS also sets hidden orders at a lower priority "Invisible (lower priority than all visible orders at the same price level)" http://www.batstrading.com/subscriber_resources/BATS_FIX_Specification.pdf Also check this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=38038&perpage=6&pagenumber=1
> Taking On the Duopoly > Dire predictions that the Big Board > would bleed flow are largely starting > to come true. In the past year or so, > the New York has shed about 10 > percentage points, mostly to Nasdaq, > from the 80 percent share level it > maintained for decades. > And the implementation of Reg NMS, > slated to begin next February, is > expected to put more pressure on > those numbers. Wish it were true... But this guy just has no credibility... When all the ** inside money ** is pouring into NYX (up 60%)... and NDAQ (up 30%) over last 6 months !!! This is not Joe Main Street buying up NYX. http://finance.yahoo.com/q/bc?t=6m&s=NYX&l=on&z=m&q=l&c=ndaq Also he quotes a Knight mouthpiece at face value... but the traders know better. Third Market firms have always used every sleazy trick in the book. It's obvious to insiders that the NYSE will successfully neutralize Reg NMS... As they have successfully neutralized every Regulation coming down the pike for 200 years.
As an SRO with the strongest possible connections in Congress... The NYSE is in a unique position to co-opt the SEC... And bend all regulations in their favor. Exactly how they have been doing this successfully for generations is beyond the scope of this thread... A good business journalist could write a 500 page book... And I could give an example or two... (For example, NYSE's Market Surveillance methodology... And the way they enforce regulations... ** Is designed ** to allow firms to get away with cheating). Basically a small group of ** several hundred ** people... Have contolled the Securities Industry for generations... And the same few 100 people will maintain control. Knight peeling off a few percent... Or an internet broker like IB surging to 1% of the size of Merrill Lynch... Actually helps the NYSE monopolists... Because they can point to a faux "competitive" industry. The Exchange Industry is not at all a big industry... NYX plus NDAQ market cap = 20 billion, P/E ratio around 50... So annual profits to split up by a stable Duopoly of only about 500 million. The US porn industry... makes roughly 5-10 times as much money. But my point is really... That it is often not important or too complex WHY or HOW something is happening... But WHAT... And the NYX stock price tells you, categorically, that the NYSE will successfully neutralize Reg NMS.
Interesting perspective, thanks for sharing...for those wondering what Reg NMS is and why NYSE firms might want to circumvent it, this article might shed some light... http://i.cmpnet.com/financetech/download/REG_NMS_Gatefold.pdf
Although the decision to reduce the SEC fees was taken earlier this year, the reduction is not yet effective, according to these links: http://www.nasd.com/RulesRegulation/MemberAlerts/2006MemberAlerts/index.htm http://www.nasd.com/RulesRegulation/MemberAlerts/2006MemberAlerts/NASDW_018082
The SEC fee reduction has to be approved by congress [or is it senate?] So we should expect it aroud febraury [since now they work 5 days a week and all...]