Shorting through ECN's ?

Discussion in 'Order Execution' started by jimmyz, Jan 14, 2004.

  1. jimmyz


    Is anyone getting better fills in shorting NYSE stocks on ECN?
    i.e. No uptick rule on the ARCA exchange.

    I am interested in anyone experiences in this era without bullets.

  2. alanm


    Quote from jimmyz:
    ...No uptick rule on the ARCA exchange.

    Why do people keep saying this? Or is there some way to enter an order into ARCA that isn't subject to the tick test, that I don't know about?
  3. jimmyz


    That is my question?
    I saw the same thing on the post but never had gotten a fill, so I wondered if the tick test was the same.

    I am a solitary trader so I have no one else to bounce this info off of.
  4. Check this link where you can find the regulation about the short on ARCA:

    In summary:

    -Short Sales Short sales are not subject to the bid test when order is matched on ArcaEx Book.
    -Trades routed to other markets will abide by other market’s short sale rules.
    -Limit Orders will be matched down to the limit price which can potentially be outside the National Best Bid if routing to an away market would not satisfy that market’s short sale rule.
    -In a down bid market when the NBB is from an away market with a bid test, Market Orders will be posted to the ArcaEx Book at the NBB until they are eligible to trade at the NBB or better.

    -Short Sales For listed stocks, on a down tick from the last sale, a short sell is offered at $0.01 above the last sale.
    -On an up tick, normal trading occurs.
  5. SEC wants to change the regulations so that ALL exchanges are subject to the short sale rules.
  6. burnin


    whats the deal with the 300 stocks that are supposed to be losing the bid test?
  7. qazmax


    I have astonding good luck shorting listed stocks on ISLD... I know what you are thinking... I would not have thought so either.

    Even when there is little liquidity showing in the ISLD book, I still post the order and get filled frequently. The uptick on ISLD is .001 so it is very close to the bid.

    The only stinky part is if ISLD has to adjust the price of your order more than once, they reject it back to you and you have to resubmit.

    I have had pretty good luck on ARCA in many stocks too... but that is more expected.

  8. tenfly


    I guess you beat me to it..I was going to mention that since ARCA and ISLD are separate exchanges, for whatever reason, both can be shorted..

    Best used when a stock is tanking and you actually have the ability to punch in and ride the down trend - works beautifully and both are fairly cheap to punch into as well (the same price actually) .
  9. jimmyz



    Are you saying that you can short on a downtick from Arca or Island?

    I understand Island on the .001 short but,
    have you actually shorted on the downtick through arca without any compliance issues...

    I was told that was a no no.

    After seeing the information from ARCA I don't see that written anywhere...

    Or am I misunderstandng your post?
  10. tenfly


    As far as I have been told, and what I was told from my ex branch manager, yes - you would be able to short on a downtick through ARCA.

    The reason that I was told, is that both ARCA and ISLD are on their own exchanges so the SEC wasn't able to force ARCA or ISLD to comply. Somewhere around those lines.

    But yes, thats exactly what I'm saying. I was able to short, on a downtick, on both ARCA and ISLD, and I understood it was 100% legal.


    #10     Jan 17, 2004