Pre-routing to major exchanges at 9:27 AM

Discussion in 'Order Execution' started by BladeTrader, Mar 27, 2006.

  1. IB gives its clients the option to "pre-route" orders for listed stocks to the major exchanges 3 minutes before the opening bell.

    What are the pros and cons of doing this vs. a regular "SMART" order?
     
  2. If you want to participate in the opening print on an exchange, a SMART routed order will often prevent this from happening, by routing your order away from the exchange.
     
  3. So what are the pros and cons of "participating in the opening print?"
     
  4. Pros: You do not care what it is as long as it is the opening price

    Cons: You might get surprised (overwhelmed) by the opening price
     

  5. It depends where the liquidity is.
    Many stocks trade 95% on the NYSE... and ECNs are deadsville.

    Virtually 100% (50-70 orders total) of my SMART orders are routed NYSE pre-9:30... because that's where the liquidity is.

    rm+

    :cool: :cool: :cool:
     
  6. Your comment and this whole discussion applies only to NYSE-listed stocks, correct?
     
  7. zdreg

    zdreg

    instead of a smart order why not just preference order to the nyse. you can pre route an order to the nyse at any time.
    please explain the reference to3minutes
     
  8. This is no significance of my own choosing, however IB's trading software allows you to select an option that will automatically pre-route your order to the NYSE 3 minutes before the opening bell.

    From the input provided, I gather that this ONLY applies to NYSE-traded stocks (simply because NASDAQ stocks don't trade on NYSE) and that if you're trying to get into the stock as early as possible, regardless of the opening price, that's it a good idea to use this feature.
     
  9. alanm

    alanm

    It's actually "re-route". It's under "Configuration->Smart Routing".
     
  10. MR.NBBO

    MR.NBBO

    alanm is correct, it is re-route. It goes onto an ECN, then at 9:27 it flips to NYSE or AMEX depending on what you trade.

    You can have it avoid going onto an ECN pre-market by checking RTH (regular trading hours only) box in order defaults. If you do, it'll sit as pending until 9:27, then it'll go live on NYSE or AMEX.
     
    #10     Mar 29, 2006