Let me explain....... If INCA is in the ADF and they are offering .65 on a stock, they will remain at .65 until someone crosses their book at .65 (assuming it is the best offer on the book). Assume that it is stil there and GSCO bids .70..... the BBO will .70/.65 . But if TRAC is in SM and offering .65 and someone puts in a bid/buy at .70 on ATTN assuming they are also in SM..... Then the trade would auto-execute with price improvement of .65. Since TRAC is there first.... ATTN will pay the TRAC fee (Maybe ?). Last example... IF GSCO is at .65 offer and you put .70 bid on INCA (assuming they are ADF) .... it will go to the INCA book first then post level II (also assuming that .70 is not crossed on the INCA book) .... hence crossing the market at .70/.65 It will be PENNIES FROM HEAVEN !!!!!!!! Banker
That post from ARCA is from July and a lot of things have changed since then. Rumor is they are going in the ADF. Originally it was believed that the ADF was going to be a gravesite for ECN's and the NASD was forcing ECN's to give up some of their revenue. But since some heavyweights have decided to go to the ADF.... INCA, BTRD, BRUT and probably ARCA and maybe ISLD, things have changed. What was originally supposed to be the end of ECN's as we know it... will actually create a more powerful (and fragmented) exchange. Well powerful might be too strong a word, but in essence the ADF will be a seperate market place where ECN's will do battle with NASDAQ for volume head to head.... rather than the NASD controlling everything which is what SM was really intended to do !!! Banker
Thanks for explaining all that. So my question is that what have they really accomplished after building up to SM for 3 years or so? It sounds like the market will still be fragmented and inefficent as it is now. However I guess it will be interesting to see how much volume is pulled from the ecns to the SM ecn "SIZE". Should be a nice F--kfest with the ecns crossing MMs which will cross the molasses fingers AMEX specialists. Once nasdaq traders figure out how to route their order they can look forward to those $6 stocks tearing ass all over the place.
I guess that was a dig at the Nasdaq trader, but thats OK. I whacked MO south on the news, just like I hope you took ATVI north on their news. I'll trade AMEX, NYSE, NASDAQ, Coins, stamps, baseball cards.....anything to make a buck !!!!!! Unlike '99-'00, Nasdaq now has less risk/less reward than listed.... but if you get your costs down to about 1.00-1.50 per 1000 shares.... $6.00 and UNDER stocks are great way to manage the risk reward and still be able to do size without being raped on commissions. Banker
It was really all in fun. I just moved over to trading NYSE in the last couple of months. Most of my trading experience was with nasdaq but I like NYSE so much better now that I got used to order routing and the slower pace of moves. I don't have to filter as much noise now that I trade NYSE. I also like trading liquid $50 stocks again. Most of the nasdaq traders I know are having a hard time trading them. On the other hand I know a few nasdaq traders who still do very well, but they had to drastically alter their trading styles. For trend moves I don't care what I am trading as long as it is moving. Unlike you though I won't trade AMEX .