So Today, for the first time in a while I traded some OTC stock. I put a limit order for 4.5k shares at $3.08. There were 4.5k shares @ $3.08 on the offer, MM cancelled more than half, filled me for only 1.8k shares and the offer went to 3.10. I hadn't experienced this kinda stuff for a while.
That is not true. OTC bids and offers are not firm. If you route your order to ARCA and there is paper on ARCA, you will get a quick fill. If the offer is a MM, they can do whatever they want. It is a shame OTC allows this, but it is not your broker, it is the exchange.
His broker owes him a fill. What happened when he asked his broker to check ? That order would have gone back to both sides with an exception message. It's the broker being sloppy.
IB routed the order to MM, it didn't route to ArcaEdge. Didn't contact them, unfortunately hard to prove.
They routed direct to an MM - MM faded and they did nothing ? That makes perfect sense. How do you bypass an exchange or a pool ? Guess what - they owe you a fill. Where did the fill you got print - the TRF ?
Well, it just says PINK. I think Robert is right, It is not IB's fault. MMs can do whatever they want. The only solution is for IEX to expand to OTC market, that way fill rates would go up to near 100% instead of stupid 40%.
Shame you didn't say Pink upfront. MMs can't do whatever they want if they ever want a second order. Any broker worth doing business with would have challenged the fill.
otc doesn't include nasdaq which is considered to be an exchange. the OP was correct under today's definitions.