inet clearing out price levels but leaving arca

Discussion in 'Order Execution' started by quin8670, Mar 7, 2007.

  1. Have you guys noticed that sometimes on a stock it will clear out all the new york book orders (inet, isi, etc) at prices a few cents away from the bid/offer but leave the island and arca orders there. So the person buying/selling is getting bad prices...

    Anyone know why or how this happens?
  2. On the NYSE, this is from market orders. Market orders just sweep the open book; they don't route out to other market centers. Reg NMS, once fully implemented, will eliminate this. There's still some arbitrage money to be made from enveloping the inside market.
  3. I don't think your explanation is correct. Can you cite exact sources to support it?