Same BS about front running and not an ounce of truth. First, the order routing stats which someone else posted a link to show completely otherwise. I think he mentioned 90% but if you add up the exchanges listed where significant volumes are sent, they total > 95%. (so much for the comment stating your order never gets sent to an exchange). Second, SMART routing determines where to send an order based upon where the client can obtain the best price. If a better price is available on an exchange or ECN, the order is immediately sent to that venue. There are no free looks as the poster states. There is no withholding of orders as the poster states. Third, as mentioned numerous times in other threads, all TH does is provide a market to IB which becomes part of the IB NBBO. It is no different than another ECN adding a source of liquidity. The fact is, IB's price improvement stats are real and are significantly better than the industry. Unlike many of our competitors, we don't measure price improvement in terms of % of times price was improved, we measure it by actual $'s saved. These stats are audited and confirmed independently. This talk above implying clients aren't getting the best available price in the market and front running is pure nonsense.
I'm not. I'm explaining how it works. Let's assume ECN ECNxyz. The same language can be used. ECNxyz provides an automatic execution service for certain eligible IB customer orders in certain Nasdaq stocks and NYSE and other exchange listed stocks. When IB's Best Execution order routing system searches the available market centers for your order, if ECNxyy is willing to provide an execution at the best available national price or better for that stock, IB may send your order to ECNxyz.
Could you explain the reason, why sending orders via SMART results in lower commission in comparison to sending orders to the specific ECN? If I send the order to SMART and finally it goes to ECN, will I get rebates?
It may or may not depending on the ECN rebate and of course execution price. If you use unbundled, you receive the rebate whether or not you use SMART for non-api orders.
Well, he did just buy a rally big (and expensive house): http://blogs.reuters.com/felix-salmon/2009/08/11/steven-schonfelds-conspicuous-consumption/
Hope we can keep this thread going (and civil!) And def, thanks for chiming in. That shows some integrity whether or not everyone on the drama board...er, I mean ET agrees or not.
Def, correct me if I am wrong Timberhill (like other teir 1 broker dealers) gives sub penny price improvement for internalized orders. For instance Bid 10 Offer 10.05. If a sell order is sent the order is filled at 10.0001. Calling this price improvement is techinically correct, however, in reality this practice is done to provide an edge for IB Timberhill not to save their customers 100th of a penny in price improvement.
Still dont quite understand why an order being internalized is so demonized. Can one of the idiots explain? I mean you sent the order, IB doesnt hack your tws and enter one for you. If you're on the wrong side or the right side of the trade, wtf diff does it make?
If I can ask a dumb question: When orders are internalized by IB/TH, do those fills print at any exchange? Thanks.