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The top hedge funds certainly do spread their trades out amongst various brokers. There are many reasons for this, but I think that keeping the strategy under wraps is at least one motivator. There's two extreme situations here that make the answer to the question of "WILL your broker follow...

For equities, I don't think that any of the NSDQ or BATS exchanges, or NYSE's own ARCA, have any such rule. A while back, I did notice that some of the older options exchanges had such rules, but not the newer ones; for example, Nasdaq Options explicitly encourages two-sided quoting on the...

There is no blanket regulation against simultaneously posting a bid and an offer in the US. Some exchanges used to prevent prevent it; I'm not sure any "modern" exchange disallows it as of 2014. OP, which exchange/product are you trading as such? The "reg" the OP might have violated is...

Everything I post is verified by documents on IB's own Web site and its SEC filings. "Timber Hill provides an automatic execution service for certain eligible IB customer orders in certain Nasdaq stocks and NYSE and other exchange listed stocks." This is internalization, whether or not Timber...

If you're on here advertising a brokerage you own or work for, could you at least be transparent about it? Also, ET may want you to pay something for the privilege.

Interactive Brokers doesn't need to sell order flow when they can just give it away to Timber Hill. Timber Hill is one of the world's largest HFT's (and also the the world's first) that just happens to fall under IB management's control. Of course, the profits from this little trick still...

I would not use an introducing broker, all other things being equal -- in my experience, they tend to make it difficult to solve technical problems that are the fault of the execution system (with some you can't even talk to the developers in the "clearing broker" -- you have to do everything...

Unfortunately, the Sterling system I wrote is split across a lot of pieces, and I haven't used it in years, and it's very customized based on the overall structure of my servers, etc., so it's not exactly something that can be easily open-sourced. I will say this, much, though: the core of the...

I've automated completely many platforms in the course of trading, including Sterling (checking every few seconds to see whether it's up and, if necessary, restarting, etc.). Although it takes some digging around and more than a little trial and error, it's pretty easy compared with the task of...

If insider trading were "completely legal", public equities will merely become a vehicle for unscrupulous executives and a handful of their lawyers to get rich. No one in their right mind would invest in such a market, unless they were simply looking to gamble (not unlike many Pink Sheets...

http://www.tradersmagazine.com/news/ecns_and_exchanges/high-frequency-firm-said-to-be-finalist-to-run-nasdaq-price-feed-112957-1.html For those of us who don't have $1,000,000+ per year to spend on direct feeds for all the exchanges, we could soon have no choice but to accept the word of a...

Correct de jure, but wrong de facto. IB's complex parent structure, in addition to the retail broker/dealer, owns a massive proprietary trading and HFT operation. It is called Timber Hill, and its ability to capture customer flow for Timber Hill to trade against is likely the main reason IB was...

Quote stuffing and spoofing imply different, but related, intentions, although they can certainly take place simultaneously. Quote stuffing is flooding the feeds with many (even thousands or millions a second) trivial quote updates to bring the feeds (especially the consolidated feeds/SIPs used...

IEX's 'small market share' excuse for queue jumping is absurd; what's to keep other exchanges from this model if IEX gets it approved? In fact, other exchanges have tried for this in years past, and the SEC has rightly rejected them. Now, IEX may be able to force queue jumping through the SEC...

There is a major difference between offering a product that carries out its basic intended function, and one that does not. All the non-trading products you mention are the former, and most trading vendors would seem to be the latter. Does that make most trading vendors a scam? Maybe, maybe...

Are you talking about US equities, as a US citizen or resident? If so, it probably won't make a difference, THIS YEAR, unless you have wash sales, which can jump into the next year even if you have no position at all on Dec 31. For FUTURE YEARS in which you have losses, it may make a...

Let me try the link again -- it seems to have been transformed oddly in the earlier version -- maybe something to do with the ET upgrade: http://tabbforum.com/opinions/iex-broker-preferencing-and-the-queue-jumpers As per the Lewis book reference, it's on page 54 of Flash Boys. That's the part...

Most of it is sub-penny "price improvement" on the part of payment-for-order-flow "wholesalers" (who are in fact the largest of the HFT's, such as Knight/GETCO). They pay a fraction of a cent a share to gain exclusive access to retail orders, at the expense of everyone else, including the...

I agree with most of your sentiments, but IEX has "broker preferencing" (queue jumping for the "right participants"), if IEX is approved as an exchange with that feature, it will be the most unfair exchange of all. And then, what's to stop every other venue from trying to get SEC approval for...

There are an infinite number of possibilities. You will have to decide for yourself. It gets a lot trickier the wider the spread and the less liquid the option. Also, put-call parity is often "violated" for very valid reasons.