Will Amex trading OTC be good?

Discussion in 'Order Execution' started by tradeoes, Aug 12, 2002.

  1. The Amex will be trading OTC on August 12 with the initial roll out of:


    NASDAQ stocks in NDX 100 and the S&P500 will also trade soon after.
  2. We're hoping that we will be able to do our opening only orders, and perhaps get imbalances for MOC's...we'll have to see.

  3. August 19th Amex start trading 2nd group:


  4. Another route for OTC orders won't be bad. The Chicago Stock Exchange trades many OTC stocks and our experience there has not been that impressive. Be aware a Market Maker is not a charity and MM do not like to trade with day traders or professional traders. Word to the wise, trade OTC stocks on an ECN . Will the AMEX give price improvement on OTC stocks and will they let you place stop orders on OTC stocks? If they will , I might take another look at the AMEX for trading OTC stocks.

    Gene Weissman
    Lieber & Weissman Sec., LLC
  5. I think the Amex will do a pretty good job vs. the MWSE. They really want to be the primary market in heavy OTC stocks. Seen in their quotes, the Amex looks like a big player.

  6. tradeoes,

    I hope they do make good markets. Some smaller AMEX specialists were taken over by big firms like Van Der Moolen, Spear, Leeds & Kellogg & LETCO. If the AMEX wants to be a player in OTC stocks, I'm sure they could. However, most MM's do not like pick off order flow, so for 1000 share orders or less, I will go with ECN's REDI, INCA & ISLD.

    Gene Weissman
    Lieber & Weissman Sec., LLC
  7. Anyone know if the Amex or MWSE will be participating in Supermontage?
  8. qazmax


    AMEX is NOT participating in Super Montage.

    AMEX will participate in ADF.

    The same is true for Cincinnati... but ISLD provides access.

    Does anyone know if Chicago Stock Exchange will be in Super Montage?

    AMEX is trying to position itself for large order flow in Nasdaq securities. They claim you will be better served at a price possibly less than the NBBO because of their ability to take down large orders.

    So I think you are right for 1000 lot orders the ECN and Nasdaq services are the best place.

  9. EricP


    What's the best way to hit AMEX on OTC stocks? I was trading FITB today, and AMEX came to the inside bid with 10,000 shares posted and just sat there. The offers piled up a penny above the AMEX quote. I tried to hit AMEX using ARCA routing and REDI routing with no luck. Can you use a SuperSOES order to hit AMEX? Otherwise, what the heck did they let AMEX trade Nasdaq stocks for??? Seems like they are just clogging up the works and slowing down the marketplace...

    All of this, of course, is from my one and only experience with AMEX on Nasdaq stocks. I would appreciate any help on the best way to hit an AMEX order. I would assume that you could place an AMEX/ISI order, but that would subject you to the corresponding long delay of manual specialist attention before anything would be done. Seems like a huge step backwards for Nasdaq stocks IMO.

  10. It'll probably be good for the floor.
    #10     Aug 13, 2002