NYSE trade through

Discussion in 'Order Execution' started by liulala, Jul 28, 2005.

  1. liulala


    I bought a stock trade on NYSE 1 dollar higher than the best ask (around $55)in electronic exchange.

    How could this happen? I think NYSE has the trade through rule which will forbid such execution.

    Is the trade through rule not valid any more? do it means you can take whatever price in electronic exchange?
  2. liulala


    My previous expereience tells me I cann't even transmit the order if the price is more than 10 cents higher than NYSE best ask.
  3. If you hit an ECN, you get the fill. Regardless of the NYSE best bid or ask. Now, if your fill is a certain % away from the going market, you may be able to get the trade broken.
  4. range



    what broker did you use?
    did you route it to the ecn or did they?
    which ecn?
    regular trading hours or not?

    more info would allow optimal responses...

    i agree with steve.
  5. liulala


    Thanks for your reply Steve.

    Previously when I use IB, sometime they just don't allow me hit the ECN even if the price is just a little bit higher than NYSE best ask.

    All these just make me confused. Anyone know how the trade through rule states exactly.


  6. ecn trawlers LIVE for people like you.

    way before 1/2 of the ECNs were created that have already been bought out or faded away, someone told me about programs called "snakes," that scan for mispriced orders in order to fill them.
  7. liulala


    It is regular hour. I find the execution is at SUPERSOES. I think I directly route the order to the ECN. BTW, i use IB.

    Let me explain how I make the transaction.

    First I bought the stock at 54.53 at ARCA. Then I see the stock offer at 55.48 at another ECN, I mistakenly think it is a bargain for the cent part '48', but I didn't realize it is actually 1 dollar higher.

    But if there is a "trade through rule" to protect me, then the order cann't be executed.

  8. range


    I am afraid you own it. If that happens again, as soon as you realize your mistake, call the broker and see if they can get the ecn to break the trade. Sometimes they will, depending on the specifics of the policy of the ecn. Since the ecns ususally have a short time limit (minutes, not hours) to appeal, I imagine that you are too late on this one.
  9. MR.NBBO


    #1 Set your IB % default settings to disallow you from doing this again. >configure>order defaults>percentage.

    #2 If it's smart route, this will not occur.

    #3 If you direct route, and if it's ISLD (and I believe BRUT), then it'll execute against ANYTHING thats on that ECN. ARCA direct routing will kill the order unless ARCA is at the NBBO-same with CAES direct routing.

    #4 If it's over/under 5% during trading hours it'll likely be deemed "erroneous"

    #5 If it's over/under 10%outside trading hours it'll likely be deemed "erroneous"

    30 minutes to break the trade is the standard.

    "SUPERSOES" is a new designation at IB VS. CAES (how it used to be 10 days+ ago). Ultimately, I believe you are using the ITS TYPE OF INTERFACE TO EXECUTE....it should kill anything outside of NBBO. If it didn't contact IB for clarification....even if direct routed to CAES & executed on SUPERSOES.
  10. nitro


    It has happened to just about everyone that has traded very early on in their careers. I did it about three times before I almost put my hand through a wall in my house.

    I know that you are looking for someone other than yourself to blame, but believe me when you put your hand on the stove a few times, you'll be cured of it like we all have. You'll start to notice a very careful and premeditated look at the bid and ask before you put your price in and transmit :D

    #10     Jul 28, 2005