To trade a hybrid successfully, you need at least 2 entry points (accounts), possibly under at least 2 different names, because even after five years of some markets going from manual to hybrid to fully automated, the systems are still jinxed. Most platforms are programmed to auto-switch off if certain trading parameters fall outside predefined limits, and it takes for ever for them to reprogram, sometimes a whole day. It is possible to eventually ware out the specialists, who then give up trying to manipulate, but risk has to be reduced more than in non-hybrid systems.
Under Hybrid, orders shown have preference over floor orders. Are you saying that the specialist will be able to manipulate the price even more under the hybrid system:eek:
Hybrid is still questionable. And who knows if it will work. If not then Archi is backup. This whole scenario leads to the Hybrid Bandits because of the LRP's. I say Hybrid Bandits because NY quotes will go manual when the LRP's are hit. LRP's still are up in the air too. And who know's if the NYSE network can handle the increase in orders (cancels) coming in from programs?? Gosh, I'm such a stooge!!! LOL!!!!
Kay Corleone: It made me think of what you once told me: "In five years the Corleone family will be completely legitimate." That was seven years ago. Michael Corleone: I know. I'm trying, darling.
Because Open Book is gonna become Nasdaq Market Maker box and therefore you will not be able to see how the specialist handles seen limit orders. It's going electronic and that is it. If you cannot trade Nasdaq, you are gonna have a lot of problems with the Hybrid. The big players want to dominate intraday with computers as much as possible.
I cant speak for all NYSE traders, but in the past 6 months or so, since I knew Hybrid was coming, I focused a lot more on trying to read the computer algorithms that trade alongside the specialist (on arca, isld, brut etc). I still read the tape but have also tried to accustom my eyes to deciphering buyers or seller on ecns. I hope it will make the transition a little easier.
Looking at the Nasdaq is only looking at short term gains from somebody elses success. Do you know anyone who as succeeded by copying somebody elses success. And also if we didn't have the market manipulators, we would all be out of a job. I would rather have the specialists, doing their thing, and be in a job. A perfect market is not tradable.
Today I shorted eln at 51. the bid was 13.00 and the offer was 13.50 I think I hit midwest but It could have been filled on arca if it did route. It fill 11.90. Does anyone know if we will still be able to take these kinds of opportunity in June when the hybrid mrk comes?