orders not eligible for price improvement

Discussion in 'Order Execution' started by vladiator, Feb 5, 2004.

  1. ...can anybody explain why a limit order may not be eligible for price improvement and why anyone would be sending these in? Just something I came across and am unfamiar with...

    TIA.

    V.
     
  2. :confused:
     
  3. dont think that is correct.
     
  4. ig0r

    ig0r

    on what instrument/exchange would a limit order not be elligible for price improvement?
     
  5. MR.NBBO

    MR.NBBO

    Think I've seen it too.....only with certain market makers such as Trimark...they like the easy pickings of market orders.

    As far as most exchanges....limit orders are always available for price improvement.
     
  6. Equities/NYSE.

    Basically there are limit orders sent prior to the opening of NYSE to the NYSE specialist. At the open they are not filled (although should be based on the limit level) and are tagged as not eligible for price improvement. :confused:

    Ultimately some ARE filled, at precisely the limit level (should it be hit.)
     
  7. MR.NBBO

    MR.NBBO

    Never heard of it .....and never seen it in practice, after years & 10's of millions of NYSE shares traded.

    Would love to see this in the NYSE handbook, though, I wouldn't doubt something like it is there as another "out" for the Spec.
     
  8. Thanks MR.NBBO.
    I assume I can buy the handbook directly from NYSE?
    V.
     
  9. MR.NBBO

    MR.NBBO

    Yes, as a matter of fact you can.....a lot of cross talk in it, but this massive phonebbook can be ordered from NYSE for $50-90 or something like that. I don't believe they will send you the section your looking for...as it seems to be available only to members.
     
  10. MR.NBBO

    MR.NBBO

    #10     Feb 5, 2004