yep, i do this, too. i believe it's legal in US stock exchanges (called "spoofing" in options exchanges, and is not permitted b/c the options MM morons can't make a living with fair rules). i also "walk" pegged orders up (or down) just for the hell of it sometimes, especially if one of those imbeciles is trying to step in front of me when i'm trying to enter a position. i wonder how much $$$ i've cost them...oh well, life's tough....
It's not front-running. I think they called it that because it sounded cool. But it does automatically step in front of the best bid/offer.
"pegging" and/or "banging" features are completely legal.......if it's (CVC) that you're doing.....it's almost always just a penny spread..so just take the offer.....I play that stock often..and it seems that the specialist is fair compared to some of the specs out there.....
If you are long, and the MM is shaving one cent ahead of you on the bid, and you want to protect your long......bid at whatever price necessary to close the spread a little by the 1 cent shave the MM will take. Of course, you want to try to do this so only he, and not you get hit on the bid.... (or offer for that matter)
It seems Jonny344 and Tony1 are correct.It seems that the arca exchange is at the pacific stock exchange.They are "connected".Why do they both show the order on level2 for nyse stocks ?Beats the hell out of me. I still maintain there is no fair order line and MM,s regularly push in front of ECN's.
graeco, mm's do that and they are mostly scumbags, but the arca thing has something to do w/ arca buying the pse some time back.