I place a sell market order for 1000 shares Routed to NYSE 1) bid 10 ARCA 50.05 bid 10 NYSE 50.04 what price do I get filled @? 50.05 right? Now, what fees do I have to pay? .30 / 100 shares becase I took liquity on ARCA. Do I have to pay any route out fees? 2) bid 1 NYSE 50.05 bid 50 ARCA 50.04 bid NYSE 9 49.90 I placed a sell market order for 1000 shares routed to NYSE. I know i'll get filled 100 shares @ 50.05, and I THINK it'll switch over to ARCA and hit the remaining 900 @ 50.04. I know I have to pay .30 / 100 but do I owe any extra for route out fees. Fees for routing out are .30 / 100 from NYSE. so would it cost .60 / 100 to take on ARCA for the remaining 900? Thanks
I'm not sure what the extra routing fee is, it might be .40/100, but in the above example, because of the 100 NYSE at .05 you will NOT I repeat NOT get the 900 arca at 50.04; instead, you'll get whatever's next in the New York book. Reg NMS only stipulates that routing is necessary at the top of the book, or the NBBO, which at the time you placed your order was .05. Thus, if no other venues are offering shares at .05, which they aren't, NYSE is free to send your order to chew through the openbook.
thank you for your response. As far as I'm aware of that I what I thought too. Someone just said that there is a new rule that would shoot the order over to ARCA. This is very important to know what plays out here. I'm w/ a new firm that doesn't really have a SMART router, (or one that I can get working) I have a strategy that takes liquity. I want to pay as little as possible. I was thinking of routing to NYSE so if NYSE & another exchange have the best bid, it'll take on NYSE so lower fees, if not it'll route to the appropiate exchange (top & bottom of the book I hope ) or I could send several orders in 1 for NYSE check to see if filled if not then sent to ISLD then for ARCA, but that'll take quite a bit of time. Im use to IB, where you send SMART and it takes care of all that for you