Don thank-you for the info. If the rules have changed, Does the Prop Shop have option to follow? Does this change apply to all Exchanges?.....Do you know any firm allow sending less then 100 share? Bright?
We still need to comply with the 100 share minimum - so, what we do is always set our pairs to the 100 share vs. 1xx shares to be neutral - no problem with 127 shares or something. It is my understanding that only retail allows the under 100 shares (I am not 100% sure....heck, I'm not 100% sure of anything these days, LOL). Don
It doesn't matter if you are retail or prop - NYSE/ARCA has a specific rule regarding daytrading odd lots - you can't do it. Nasdaq and the rest just have broad market manipulation rules, so if you are undercapitalized and choose to trade odd-lots, as long as you're not manipulating quotes or gaining advantages, you can do so. You still can't send your orders to NYSE or ARCA, though. Here's the link to the rule when NYSE put it into effect a few years ago: http://gset.gs.com/cgi-bin/upload.dll/file.pdf?z03860f0az796c394f2f1c49af8ac88dcdb9c5c19b Doyle
Did you know that years ago, ARCA would not even execute an odd lot until it was matched ON ARCA by ANOTHER ODD LOT! Price be damned. Now , when they deliver your time machine, you can use that to make some easy $.
I would assume the only traders who would need odd lots are the ones who are trading dollar neutral pairs or beta weighting their positions in relation to to others etc... Something along those lines Nick
Those high price stock which have big spread are the big player breads and butters. By implementing 100 share lot sure locked out a lot of under capitalized trader and keep the market to themselves. as I posted before. Rules are being shaped by big players to their favors and if it is not the rules or deem to be illegal... will lobby for it and made it legal! ain't no such thing as fairness in the market place that I can see.