Which brokers allow you to peg the bid/ask?

Discussion in 'Order Execution' started by bobbyzimmy, Jun 2, 2006.

  1. I'm interested in submitting a buy order (for example) that will submit a limit at whatever the best bid is (peg the bid). I can do something like this at IB, but instead of specifying a peg on the bid I peg with an offset from the offer (so it will submit a limit order to buy at offer - offset). I've noticed when I do this that there are others in the market who are pegging just inside of me---they're pegging to be just inside the best bid. I know I can do this at my day job (at a large fund) but haven't seen this capability for an regular-sized individual. Anyone know of a brokerage that offers this kind of order?

    Thanks in advance.
  2. If I correctly understand IB documentation, IB provides the type of order you seek. IB calls it a "pegged to primary" order, but makes it available only for orders direct-routed to BRUT. BRUT itself implements the pegging natively, which is always much more efficient than having your broker attempt to re-price your order to maintain the peg.

    I believe that other ECNs, like ARCA and INET, also natively provide this capability, but I don't know why IB hasn't made such capability available, and has instead limited it to BRUT.
  3. It seems you are correct. I can't figure out how I missed that. The pegged to market order that I've done before is also only available through BRUT, though I've done orders at my day job through INET that are pegged. Are there any brokers that allow pegging outside of BRUT?

    Thanks again for answering Jim.