Ib & Island

Discussion in 'Interactive Brokers' started by H2O, Nov 20, 2003.

  1. H2O

    H2O

    I've noticed the following :

    Afterhours ISLAND (direct routing) from TWS.

    Stock XXX
    bid 14.75 (1) ask 14.92 (12)

    If I enter a sell order at the ask, I see the asksize changing in TWS. If I remove my offer, it gets back to the old size (So far everything normal)

    BUT,

    If I enter an order to sell at 14.91 (And try to become the best offer), NOTHING CHANGES in TWS (Still showing the 14.92 offer) wile my order status is green (should be working at the exchange)

    Can anyone explain this ?
     
  2. sprstpd

    sprstpd

    Are you trying to short a listed stock? If so, uptick rules apply afterhours on listed stocks (not Nasdaq). If your order violates the uptick rule, IB modifies the price so it won't violate the rule. So in the example above, 14.92 might be the first price that doesn't violate the uptick rule and so that is what your order is modified to.

    If you are already long the stock, then something is wrong - contact IB.
     
  3. H2O

    H2O

    Thanks, that might explain it, didn't think about this.
     
  4. alanm

    alanm

    Quote from sprstpd:
    Are you trying to short a listed stock? If so, uptick rules apply afterhours on listed stocks (not Nasdaq). [on Island]


    Actually, it's worse than an uptick rule. Between the NYSE closing and the NYSE opening the next day, both ISLD and INCA use a tick test based on the NYSE closing price, regardless of any after-hours or pre-market action. That is, if the NYSE close is 14.91 and was a downtick, the minimum short-sale price until the next day's opening will be 14.92. If 14.91 was an uptick, the minimum short-sale price will be 14.91.

    Of all people, ARCA did a better job here, basing their tick test on the last trade on ARCA. I think BRUT does it right also (hard to remember, since there's almost no listed trading there).

    Is it really true that Island doesn't have a bid-test for NASDAQ stocks outside regular trading hours? I then wonder why they felt compelled to "fix" this for listed stocks a couple years ago.