could someone explain following. I quite often see prints/prices of stocks which are still in sub-pennies, for example $ 8.2001 This means that when I am bidding 8.20 though an ECN (like for example inet or arca) my buy limit does not get a fill because "someone"is paying 1/100 cent more. Could it be a market maker or black pool/crossing network? thanks
It is definitely a market maker / crossing network / dark pool... I've gotten this type of price improvement using AUTO and TRIM... - mnx
thanks mnx, could you please informed if auto means automated trading desk and trim = Trimark? One of the platforms I use is Realtick and there is a routing through Trimark but it is not possible to send a limit price in sub-pennies. Does it mean that you route though them. As far as i know these are market makers correct? Are you able to place sub penny prices buy/sell limit prices through them? I just do not understand, please explain.
yes, AUTO = ATD and TRIM=Trimark. You cannot specify sub pennies, but sometime if you hit the ask and you TRIM or AUTO the will give you a price 1 or 2 hundredths of a penny better... - mnx
thanks mnx, your answer is clear. Unfortunately it will not be interesting for me to hit their bid or lift offers. I have a rebate trading style; place bids and offers to receive the rebates. I just never take liquidity. Do you know if it's legal for these market makers to quote in sub pennies for stocks which have prices above 10 or 20 dollar. I just thought that this pennying strategies were not allowed anymore. It's a big disadvantage for people like us.
When I traded with Scottrade, I'd get sub penny fills quite often, buying and selling. FWIW, I'd usually be taking liquidity.
Im sure it wouldn't affect you because they aren't going to be filling your bid or offer with price improvement. It's more for the market maker to fill their clients orders with price improvement. If they don't want the order then I'm sure they will lay it off on an ECN and you get you limit price fill that you put out.