Discussion in 'Order Execution' started by NasdaqTrader, Oct 3, 2002.
Does anyone know when and if INCA and ISLD will combine their order books into one?
yes -- soon
currently instinet opens at 3am eastern time, and island at 7 am. Would Island also open at 3 am after the merger with instinet??
So when they combine,will they use the INCA symbol and will it participate in Supermontage?
They might not merge. I am hearing that INCA will be in the ADF and Island will be in the Montage. A dual ECN strategy that will allow them to capture maximum volume.
Unlike LSPD and TRAC, soon to be ATTN where ECN's generally don't get paid for an Auto-EX.... Island will. Their prices are in-line at $2 to add and $3 to take.... plus you just can't afford to be turned off by ISLD and INCA !!! (How could you trade anything without it?).
I think that the ADF will actually do the exact opposite of what the NASD intended. It will be more fragmented with crossed and locked markets everytime. Just look at AMEX........ they go wherever they want and hold stocks crossed forever !! Soon they wont be able to hold it and combine it with another 4-6 ECN's in the ADF and it will be total chaos. I think there will be a lot of great arbitrage opportunities. We'll see in 2 weeks !!
So if INCA is in ADF,will they still show up on Level 2?And also,if INCA is in ADF,will they ONLY be accessible through a direct connection,and not through a proactive ecn such as ARCA?
All ECN's and UTP's (Amex) will show up in Level II. Since there is no Selectnet, you must have a direct connection to trade with those in the ADF.
You can't trade through someone in SM if you are in SM.... but the ADF is like a separate universe. They'll be there to hit in their own little world (or in other words -- their "book"), and they won't hold up the montage....hence the fragmented market.
If ATTN and NXTD go in the SM....they won't get paid !!! and if they go in the ADF and they are .03 + out of the money..... (Which they will be cause they'll always be hit last) I'll be glad to pony up the .009 per share. But if they are 3 cents out of the money or more in a fast moving stock...will they really post it there ?????
As far as ARCA being pro-active (hitting an ECN at the same level)... I don't know but I assume it will. This is because there is no auto-ex now on ARCA and it still hits other ECN's and MM at the same level. This system will be similar in the ADF.
"their own little world" - wasnt that the gripe with island and the ETFs?
Did you mean you can't trade through someone in SM if you are NOT in SM?If not,what do you mean by your statement?
I found this link that mentions how ARCA will be impacted when Supermontage arrives...http://www.tradearca.com/content/announce/ARCAUpdateJuly2002W.pdf
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