AMEX order execution

M

m22au

I'm hoping an expert can shed some light on the order execution rules for AMEX stocks. I had a look at the amex.com web site but the only relevant section (http://www.amex.com/atamex/aboutAmex/mktStructure/at_mktStructure.html) did not have the specific information I am looking for.

The issue is that yesterday a specialist was either holding on to my (marketable) limit orders for (a stock with volume of 400k to 500k shares) for over 20 seconds. It wasn't because someone took the liquidity before I placed my order.

Separate to this, my broker (IB) routed some (add liquidity) SMART orders for the same stock to Island. That made me think that the specialist was out and out not interested in my orders at all.

If anyone can provide some guidance as to the AMEX rules that would be great, particularly for how long the specialist can hold onto my order after it is placed.

I ended up putting most of my orders for the stock through ARCA and Island yesterday.
 
20 seconds is nothing...

I've had nyse specialists hang on to my orders for over 5 minutes before filling or quoting them...

mnx
 
i can't answer your questions, but i can add some as i'm also new to Amex stocks, specifically Barclay's ishare products. this is what i've been encountering:

1. send a mkt sell at the amex specialists bid price for 100 shares, get filled after 5 secs or so, do it again, get filled, third time around, he fills me at a lower price than his quote. I call IB trade desk, and even though my order was in a full second before he changed his quote, i still had to eat the 6 cents, and this is aparently normal. I would send mktable limits, but he sits on them longer and sometimes doesn't fill them at all. If I send them somewhere else, the stock just crosses and will even trade through. Since everyone wants the best price possible and it's a fairly illiquid stock, I assume this is spoofing as opposed to some newb somewhere who doesnt trade SMART or see ARCA.

2. send a limit buy or sell for 1000 shares inside the smart spread to arca. i get filled for 91 shares, then some other odd amount leaving me with something like 814 shares left in my order. I notice when i compete with the specialist instead of taking his sometimes extremely greedy offers, this happens to me about 30% of the time.

3. the amex spec typically doesn't quote these ishare stocks until 5 mins into the day


I am trying to sort out his powers here based on things i've heard and observed:

1. the amex spec can trade on the other exchanges
2. the amex spec can execute trades outside his spread and thats ok
3. the amex spec can see that i'm trading from IB

All I have to say is, if the amex spec isn't there to provide and honor real liquidity, why does he deserve any advantages? I'm relatively new to stocks coming from globex but these seem to be good products on a bad exchange
 
Quote from m22au:

I'm hoping an expert can shed some light on the order execution rules for AMEX stocks. That made me think that the specialist was out and out not interested in my orders at all.

If anyone can provide some guidance as to the AMEX rules that would be great, particularly for how long the specialist can hold onto my order after it is placed.

I ended up putting most of my orders for the stock through ARCA and Island yesterday.
More...

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M22
I keep hoping someday the newly annointed CEO of AMEX fixes all that;
but actually these posts are amoung the more mild ''mistakes''.

The real shocker is how many of these type comments we keep /keep on/keep on seeing over the years.

Interesting ,had a NYSE specialist take 4- 5 minutes to fill an order also , 1 time in 5 years , but it was a prettty good /profitable fill/trade.

STRANGE how AMEX always seems to take too much time and then give bad fills.

Makes me think they dont want my business or any one I know;
as you say ''not interested in my orders at all''
Best rule have found for AMEX is set IB up to exclude AMEX,;
SMART idea.:cool:
DIA, SPY ...are good indicators ,more so than trading them/AMEX
 
lol, today he started quoting 10+ mins into the day. how normal is this practice? it's a pretty severe disadvantage for anyone looking to TRADE these instruments
 
I learned a long time ago to never route anything to the AMEX. Especially options.....ugh. I suggest you stop or one day you wont have an "LOL" in your post. Seriously. These guys hold, step on and in front of orders with impunity....no chance for any recourse ever on your end. At least thats my experience.
 
i hear you completely and i appreciate the sober assessment. i emailed the retail contact for ishares products, but would expect that to likely fall on deaf ears. if it takes a big enough chunk out of the strategy i'm attempting to run, i guess i'll vote with my dollars.

thanks man
 
Quote from Avid_Consumer:

i can't answer your questions, but i can add some as i'm also new to Amex stocks, specifically Barclay's ishare products. this is what i've been encountering:

1. the amex spec can trade on the other exchanges YES
2. the amex spec can execute trades outside his spread and thats ok YES
3. the amex spec can see that i'm trading from IB YES

All I have to say is, if the amex spec isn't there to provide and honor real liquidity, why does he deserve any advantages? I'm relatively new to stocks coming from globex but these seem to be good products on a bad exchange. Bingo
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Generally, ETFs don't open until after all the component stocks are open. That's why they take a while.

Personally, only a handful of ETFs are liquid enough for my tastes.
 
Quote from alanm:

Generally, ETFs don't open until after all the component stocks are open. That's why they take a while.

Personally, only a handful of ETFs are liquid enough for my tastes.
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thanks for passing that on, i hadn't considered that. if that's the case, maybe they should implement whatever solution they employ on IWM, or perhaps its just so liquid that nobody misses the amex if they're absent (which i suspect they're not - will have to observe its open).
 
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