You guys on this thread are the most pumped up I've seen anyone about SuperSoes. Everything I've come across has said that SuperSoes is OK but really not that great. To be honest I haven't traded on the new system yet as I trade primarily listed stocks too. Maybe I will have to see what all the hoopla is about....
Supersoes won't necessarily make trading Nasdaq stocks any easier. In fact it might be harder at first, because stocks will probably become more volatile. The difference will be that you can execute your stop loss quicker and take profits faster. Another difference might be is if you hesitate in your execution, the slippage might be severe. If you are long a stock, you can bet your ass as soon as it starts to tank the Market makers at the inside bid will bail immediately along with the ECNs. I am planning next week to exit stocks immediately if I even think they are about to tank. I will not be waiting for confirmation. As I start to get used to the execution, I will probably loosen this rule a little. As far as switching the Nasdaq you should go with what you know. Even if you arenât profitable, If you are improving as an NYSE trader you might want to stick it out. Keep in mind switching to the Nasdaq will require a whole new skill set and there will be a learning curve. Alex
Alex, I tend to agree with your take on how the SuperSoes system may turn out. When you think about it there isn't going to be more liquidity then there is right now, right? I mean if company ABC currently has "X" amount of shares outstanding and "X" amount of shares in it's float that isn't going to change under SuperSoes. Maybe the distribution of those shares will change but I don't really know. I'll let you know (6) months down the road (LOL) Leland
DELL, ORCL, SUNW Securities to be Phased Into SuperSoes on Thursday, July 26, 2001; http://www.nasdaqtrader.com/trader/news/2001/headtraderalerts/hta2001-115.stm
so does the elimination of the 30 sec window for mms to respond mean that IB's Best_ECN feature will go back to the original algorithm?
Because SuperSOES is so much cheaper than ECNs, I am curious if IB will go past an ECN bid to hit a SuperSOES bid to save themselves money? Example: MSFT MMID BID SIZE INCA 67.06 10 LEHM 67.05 10 Question: Will IB sell to the best price on INCA which costs them more, or will they sell the 05's on SOES so they make more money? Anyone know, just curious?
Babak, The 30 second rule has not been eliminated. MM's still have 30 secs to respond to a SNET liability order if thats what you were referring to with the 30 second rule reference. Regardless, I am sure that IB like Redi and ARCA will change any smart order routing algorithms to route to SS rather than SNET pref orders as it simply makes sense.
I trade remote with Echo and got to play with the SuperSOES today on their system, I was rocked by how fast it is. Good stuff. Courtney
Tradecourse, ARCA will change their algorithm to SuperSOES instead of SNET, I hear, but you will save a lot of money in ECN fees if you just route it directly there instead of letting ARCA do it. It is also much faster to go direct. For everyone, make sure your firm will let you route directly to SuperSOES, don't let them give you the old "ARCA or REDI will do it for you." If you bug them enough they should be able to get a direct connection in or they are way too behind the technology curve to trade with. Just my two cents. -Jim