Post IPO auction

Discussion in 'Interactive Brokers' started by d08, Oct 20, 2021.

  1. d08

    d08

    I've been looking into buying into IPOs at the post open auction. Sending an OPG order in the morning is out of the question as it gets rejected. According to IB CS, when quotation starts, I should be able to send the OPG order. Yet there are no sources available to know when quoting starts and it can be any time of day.

    Nasdaq halts page mentions code IPOQ (IPO security released for quotation) but it's never displayed in the halts page apparently and I have not found any other sources for this.

    Continuously monitoring halted status from IB (halted ticktype) is an option but it seems like a rough approach. Anyone successfully tried this?

    How do the big boys do this?
     
  2. jharmon

    jharmon

    I'm not a big boy, but I can look in NxCore to see what arrives there to see if things can then be timed with a broker. Pick a recent example or two and I'll check it out.
     
  3. def

    def Sponsor

    I haven't tried this but perhaps it works. Enter a conditional order with a trigger based on the last (setting the trigger lower than where expect the IPO to open. When the stock starts trading your order will be sent via the trigger you set.
     
    d08 likes this.
  4. d08

    d08

    This should definitely work for the continuous market. I've already tested by sending a small order (midprice w/ lmt) with a far out price and that executed a few seconds after the initial auction but was not part of the auction itself (where the real volume is). Still curious about being part of the auction though, at least for Nasdaq names.
     
  5. d08

    d08

    Thanks. CNTX yesterday had the auction at 11:28:01. I don't see any quoting before that. I would think at least the Nasdaq halts page would have an update a few minutes prior but there is nothing.
     
  6. def

    def Sponsor

    If an IPO isn't the first print from the buy side done by the underwriters?
    I don't see any data either from other source,

    upload_2021-10-21_16-38-50.png
     
  7. d08

    d08

    I'm referring to the IPO cross, the 11:28:01.279 one on the ToS (NASDAQ IPO Cross). If I understand correctly, I should be able to send MKT OPG at about 11:18 or slightly later to participate. Ideally on IB side, these orders could be held until the quoting period begins and then transmitted, similarly how auction orders currently work. Right now they're simply rejected. Alternatively, I'm just looking for a way to determine the time quoting begins to see if I can send the crossing order directly.
     
  8. jharmon

    jharmon

    NxCore had the usual premarket halt messages at 03:07 and 07:21

    At 10:35:00, a Halt: IPO_ReleaseForQutation came in, and from then on there were over 100 quotes that came in (none of them actually updated NBBO) with the last around 11:27.

    The first trade came in at 11:28:01.279 with trade condition "OpenReport"

    There were no messages to show when the open would occur and no obvious change of message types from 11:10 onwards.
     
    d08 likes this.
  9. d08

    d08

    Thanks. To my understanding this is when the IPO cross orders can be entered in. Imbalance is likely shown later.
     
  10. def

    def Sponsor

    I'll have to ask my colleagues about this given my expertise these days is in Asia.
     
    #10     Oct 21, 2021
    d08 likes this.