IEX should expand to OTC markets!

correct.
1. you have to ask. 2. it has to be asked on a timely basis. 3. resolving it can be a distraction from trading. depending on the amount involved you may chose to ignore it.

 

It's the new version of "traded ahead" that the slimy Naz MM's use to pull on the phone.

 

You’ve got to be more clear when discussing OTC. I understand what you’re saying but it isn’t very clear.

It has two very different meanings.

 

Whats not clear? He says he got a partial fill, and they moved the ask?

Am I missing some secret code he omitted?

He doesn't say if there was size at 3.10 and if there was, I guess he shudda took it. I think that stock went to 15 by the eod

 

There was only 2.1k shares on the offer at 3.10. Stock ended the day flat but I am not a day trader, I usually hold things for up to a year.

 

I just spoke to a rep at OTC. He confirmed what I knew already. When you send your order in an OTC stock, your broker will likely send that order to the equity MM they have a relationship with. That Market maker can review that order to see if they want to sell it or route to the MM that is at that price. There is no real-time restriction for that. In practice, they will then route that order to the other MM but that could take minutes. That MM, if it receives that order from your broker or the other MM, is not held to their offer. they can sell or fade.

They told me they sent a rule change to FINRA to make MM bids and offer "firm", but FINRA rejected the request. The reality is that your broker does NOT owe you an execution in the wild west of OTC. You trade their knowing it can be a black hole. You are also trading symbols that might not meet the accounting requirements by NASDAQ or NYSE, so you never know what you are trading.

Expecting your broker to take the other side of your trade when you expect you are due an execution you could not receive in the marketplace, is not a legal requirement of any kind.

 

Thanks bob, really helpful. Maybe I should add that the stock is actually an ADR of a Canadian company, so not a penny stock or dark company.

 

But what exchange is it traded on? OTCQX, OTCQB or OTC PK. That and the amount of public paper is all that matters.

 

It is listed on OTC PK. What do you mean by public paper? float?

 

By public paper I mean bids and offers by non market makers. Limit orders left with a MM or on ARCA. OTC told me they have a proposal for an OTC ECN. If that is approved and your broker will route orders there and there are public bids and offers, you will get quicker fills.