I've done some web searching and found a page posted the the Securities Institute of America which confirms what IB says about Supersoes only handling marketable orders. http://www.securitiesce.com/web/pages/series24/files/series24sample.pdf I've also learned that Nasdaq, Brut, and Inet are being combined into one platform with initial phase in starting Sept 18. http://www.nasdaqtrader.com/trader/tradingservices/integration.stm
Limit orders that are not marketable should post on NASDAQ as limit orders ("SIZE"). The first link you posted does not actually contradict that, although it does talk about other things. The NASDAQ FAQ below shows that "regular hours DAY orders" submitted before 9:28 am participate in the cross, and become limit orders after the open if not executed in the opening cross... http://www.nasdaqtrader.com/trader/openclose/openfaqs.pdf Yes, NASDAQ is merging BRUT, INET, SOES, and i wonder who will be using ARCA for NASDAQ stocks after this integration, when 75% of the volume will be on NASDAQ's new "Single Book"... Maybe ARCA will have to lower its prices on NASDAQ stocks to compete..
The integrated system is going to work the same. I am pressing this issue with my sales rep. Since it is natively supported by the exchange I cannot understand why IB would not support it, preferably under their Smart routing. An excerpt from their integration proposal to the SEC: http://www.sec.gov/rules/sro/nasdaq/2006/34-53583.pdf (7) âMarket Hours Ordersâ shall mean any order that may be entered into the system and designated with a time-in-force of MIOC, MDAY, MGTC. Market Hours Orders shall be designated as âEarly Market Hours Ordersâ if entered into the system prior to 9:28 a.m. and shall be treated as market-on-open and limit-on-open orders, as appropriate, for the purposes of the Nasdaq Opening Cross. Orders entered into the system at 9:28 a.m. or after shall be designated as âLate Market Hours Ordersâ and shall be treated as imbalance-only orders for the purposes of the cross. Beginning at 9:28 a.m., requests to cancel or modify Market Hours Orders shall be suspended until after completion of the Opening Cross at which time such requests shall be processed, to the extent that such orders remain available within the System.
Good news. My sales rep tells me that when Nasdaq implements the integration of Brut, SuperSoes, etc that "you will be able to send non-marketable SMART limit orders pre-9:28 on NASDAQ stocks that will participate in the opening auction and if they don't get executed there, they will remain on the book during the regular trading session." He also tells me that the integration which was scheduled for Sep 28 has been delayed until mid-October.
That sounds great to me. I didn't have luck getting IB support to even understand the "suggestion" to have SMART routed NASDAQ limit orders participate in the opening cross and remain active if they were not filled at the open. I guess that my inquiry ticket ended up with the wrong person. I'm glad that you had better luck than me.
fbell50 could you please explain what you mean by "integration of Brut, Supersoes etc" As far as I know brut/inet will merge, so there will be one book. So what about Supersoes/size? Will just stay like it's now, i think. Furthermore I understand from your message that pre market limit orders on brut/inet will participate in the Nasdaq opening cross. Can you confirm this? Thanks
When I place a smart buy limit order, in the pre-market through TWS / Interactivebrokers, will it participate in the opening cross of Nasdaq?
Unfortunately, it will NOT participate in the opening cross. I just got burned again yesterday on this one. I had placed a SMART GTC order to sell an illiquid Nasdaq stock using TWS the day before yesterday. Yesterday, the stock traded 1800 shares at $9.72 per share. My sell order was at $9.67. The stock did not trade the rest of the day. Everyone's a loser on that one. I didn't make my profit. The buyer of the stock got burned. IB didn't make their commission. This is the way it works all the time for me. I trade illiquid stocks, so missing the opening cross when one of my stocks trades at the open means that it might be days before I get my trade or I might have to accept less profit. You can capture the opening cross by using a MOO or LOO order. These orders capture the opening cross, but they automatically cancel after the open. You could wait until after the opening cross and then submit a standard Limit order if your LOO does not execute at the open. I used to try to play these silly games, but the logistics got to be too painful of doing this every day for all my stocks. There is also more chance of making errors. I tried to submit a suggestion to IB tech support to create a limit order type which would capture the opening cross and remain activce afterwards if not filled during the opening cross. I had previously asked whether there was a work around to this problem. Both times that I had submitted an inquiry, I got the same support tech who did not understand the question the first time and did not understand the suggestion the second time. It seemed that he thought that it already worked that way. I can assure you that it doesn't. He wouldn't even pass the suggestion on to a developer because he felt there was nothing to suggest. Now that I've been with IB for a while, I have other suggestions to improve the SMART router. However, it's a moot point as there is no method to submit suggesions which get past the help desk jockeys. Don't get me wrong, IB is definitely the right broker for me and probably many others. You just have to take the bad with the good. Just call me greedy, but I want to improve the system so that I can make more money than I already do.
I think that I missed an important point of your question. If your order is ACTIVE in the pre-market (outside of RTH), it has been my experience that it will remain on an ECN until after the opening cross has occurred.
Try submitting your limit order before 9:28am on the SUPERSOES route directly, rather than using SMART, and report back your result. Technically speaking, a limit order submitted TO NASDAQ (ie SUPERSOES route on IB) before 9:28am should participate in the opening cross. Also, if you have a suggestion to make, try using this http://www.interactivebrokers.com/en/general/poll/poll.php?ib_entity=llc I think they're trying to consolidate all enhancements/requests/suggestions through that system