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!
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/
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!!
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?