Why do orders get routed out?

Discussion in 'Order Execution' started by Sky123987, Feb 14, 2008.

  1. I had an order parked on ISLAND ready to receive the liquity rebate. Then I find myself routed out to ARCA and paying the routing out fee.

    Why do they route out? Is it the case that there was a market order on ARCA, and then it saw my order parked on ISLAND then moved it over to ARCA, and then matched the orders?

  2. In theory anyway, you would be routed to a better market when it popped up.

    I assume you parked a limit order on Isld, or thought you did. How long was the order active?

  3. hmmm, guessing active for 10 seconds on ISLAND, then filled on ARCA

    how do they define a "better market" i can understand when sending a mkt or marketable limit order than you are routed to the mkt with the best price, but I'm confused as to what the better market is

  4. RegNMS.

    I think your limit order became marketable on the ARCA and got routed out. Better watch NBBO and act accordingly...
  5. Yep!

  6. Yes, and if you don't want your orders routed out, you can change the settings on your trading platform to make sure your order does not get routed out.
  7. You really have to ask yourself, "do I want in this trader, or do I care is I miss it...."

    If you want, route that sucker out from where you are currently and deal with the fees or set tighter ECN restrictions and miss a few opportunities along the way....if you are managing this, you will be greater rebates vs. paying!
  8. How did you manage to put an order on Island?? Island doesn't exist anymore...
  9. I routed SMART on IB. It says ISLAND
  10. Intersting... they probably need to update that one.

    BTW smart routing orders will hit anything they can. That explains why you removed from ARCA.
    #10     Feb 15, 2008