orders on a tenth of a cent?

Discussion in 'Order Execution' started by TheJay, May 19, 2011.

  1. TheJay

    TheJay

    Anyone have any info on how these orders are placed and which ECNs are able to be used and what related fees may look like?

    example, microsoft printing at 24.768
    Is this something avail to 'the little guy' through a darkbook or something along those lines? or is it institution only

    I trade on Sterling and through JC trading so have a variety of ECNs I can use

    Thanks!
     
  2. rmorse

    rmorse ET Sponsor

    They should be able to help you with you question at your trading firm, JC.
     
  3. Occam

    Occam

    Internalizing broker/dealers and the payment-for-order-flow pentopoly can trade at sub-penny increments like this against their retail clients -- you, however, generally cannot. The practice, known as sub-pennying, is discussed below:

    http://www.tradersmagazine.com/news...irect-edge-sec-105265-1.html?zkPrintable=true

    http://www.defendtrading.com/
     
  4. t0pd0g

    t0pd0g

    I trade with JC Trading Group. They offer access to the following Dark Pools:

    Credit Suise (4 different ones)
    UBS
    Getco
    NITE
    Millennium

    Plus all the Mid-Point Routes such as:

    ARCA MID
    BATS MID
    EDGE MID
    NITE COVERT MID

    I am sure there are others but those are the ones I see on my Sterling dropdown from JC Trading. Its actually a little overwhelming that they offer so many!!
     
  5. Sintra

    Sintra

    Those sub penny executions are done because of flash orders(I think).
    It was proposed to ban this by the SEC but as far as I know it has never been a final rule. Your order is not sent directly to the exchange but to a small group (HFT) first. So the capture the spread and get a rebate. Even I you are waiting for minutes to be executed.

    So you can send an order in to ARCA, BATS, EDGE and NITE on the mid? Probably this one is invisible right? If it is quoting in the market is would be a violation of the sub penny rule(rule 612).

    Does anybody know what the criteria is to be able to send these orders in? Do you have to be a member of that exchange or trading some number of volume?