question (ecn rebate/fee)

Discussion in 'Order Execution' started by condythug, Nov 16, 2011.

  1. condythug


    hi i just joined and am a little confused about ECN rebates and fees, suppose I add liquidity using EDGX when buying a NASDAQ stock, do i have to sell the stock that i bought (to close the position) through the same EDGX route?

    or can i use another route like NQBX to sell the stock and get their rebate for removing liquidity? so i am able to gain rebates on both sides of the trade?

    if i am only trading NASDAQ stocks, what's the best routes to use for getting rebates for both sides of a trade?

  2. Occam


    You should be able to route to any available route for any part of your trade -- it's your broker/clearing firm/platform's job to keep track of your positions (unless you're using a raw FIX implementation and/or sponsored access, in which case it's YOUR job, which the nature of your question makes it seem obvious that you're not).

    Your "best route for ???" and your "i am able to gain rebates..." questions are connected in a ways you're probably not aware of. The rebates/fees are factored in by various routing algorithms, coupled with B/D's incentive to use payment-for-order flow firms (or even internalize), making this a really nontrivial set of questions that probably no mortal can answer with absolute certainty.

    I would be most inclined to use NASDAQ for NASDAQ stocks, as that's the venue with the most volume in those stocks, and I would therefore assume the best fill rates there. But that's not factoring in rebates, which admittedly can make things a lot more complicated.
  3. condythug


    thks for the reply! :)