I noticed this since flash rules changed at

Discussion in 'Order Execution' started by stock777, Sep 14, 2009.

  1. vikana

    vikana Moderator

    I don't actually watch bid/ask directly, but my average trade profit has improved by about .25c since Sep 1

    No way to know if it's related.
     
    #11     Sep 14, 2009
  2. The law didn't actually change, but the simple mention by the SEC and congress that FLASH orders were coming under scrutiny made NASDAQ and BATS drop their FLASH orders back on Sept 1st.
    EDGX/A, ISE are the only ones still offering and promoting FLASH orders.
     
    #12     Sep 15, 2009
  3. WHat is the routing code for a flash order on EDGA/x? I haven't seen any routing code that mentions this ...thanks.
     
    #13     Sep 15, 2009
  4. d138

    d138

    This is not true.
     
    #14     Sep 16, 2009
  5. EDGX - they still provide the ELP program (they just ceased to try to push a flash order similar to nasdaq's and bats broader approach). They talk in favor of flash orders, and they included flash orders in their SEC application to become an exchange.

    ISE - They're not supporting them anymore... but they're still talking favorably about them... they actually have an interesting proposal of just showing them to all people... if that rule passes, it's back to the good ole days of Attain... just that the attain happens a bit faster now...



    Regarding the rules. It seems like D-day is next Thursday as the SEC is going to be looking not only into FLASH orders, but also into darkpools, liquidity rebates, HFT and all other sorts of trading tools that make US trading so much fun...







    Would you care to expand on that, or at least be a bit more specific. I doubt that the information I posted is untrue, it might be out of date or lacking detail, but not strictly untrue.


    Here's a few sources.

    http://www.tradersmagazine.com/news/flash-orders-locked-markets-104260-1.html


    http://directedge.com/NewsletterDetail.aspx?Id=101

    http://online.wsj.com/article/BT-CO-20090914-710192.html

    http://www.securitiesindustry.com/news/-23945-1.html

    http://online.wsj.com/article/BT-CO-20090820-711300.html

    http://www.reuters.com/article/pressRelease/idUS108390+14-Sep-2009+GNW20090914




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    #15     Sep 16, 2009
  6. d138

    d138

    Well, it's in your link: "Accordingly, Direct Edge has suspended its plan to offer flash functionality (tentatively entitled the “Flare” order) similar to that previously introduced by NASDAQ and BATS, voluntarily withdrawing a related rule filing with the SEC."

    Also ISE is the same thing as DirectEDGE.
    And ELP program has nothing to do with Flash.
     
    #16     Sep 16, 2009
  7. d138

    d138

    Well, it's in your second link:
    "Accordingly, Direct Edge has suspended its plan to offer flash functionality (tentatively entitled the “Flare” order) similar to that previously introduced by NASDAQ and BATS, voluntarily withdrawing a related rule filing with the SEC."

    Also ISE is the same thing as DirectEDGE.
    And ELP program has nothing to do with Flash.

    Promoting and offering are different things. I can actually try to explain you why flash orders were good for a retailer investor.
     
    #17     Sep 16, 2009
  8. liquidity in small caps has gone to virtually zero. i dont think its due to flash though
     
    #18     Sep 16, 2009
  9. What do you think ELP is?


    EDGX routing options have some that use IOI destinations before sending orders to the market, some that only go to IOI destinations and some that don't go to IOI destinations.

    Those IOI destinations are ELP's that get an indication of interest for a few fractions of a second before the order gets sent to the wider market.

    :)
     
    #19     Sep 16, 2009
  10. d138

    d138

    1. If ELP and FLAIR were the same, they would never come up with the FLAIR. Correct?
    2. IOI and FLASH are different things in there nature: FLASHED order resides on the book so you will be able to interact with other orders, IOI messages goes to the ELPs and never comes back.
    Both of these two order types were completely optional. You just need to read the description of the order types and use them wisely.
     
    #20     Sep 16, 2009