ARCA Listed Routing SUCKS!

D

davealex

Can anyone point me to ARCA listed routing info that is up to date? Besides the double-speak pap that is on ARCA's web site?

I consistently get CRAPPY (I mean .05 to .20 away) PSE fills when the NYSE (and other exchanges) are on the inside.

This ArcaEx is BULLSHIT. Smart Routing is supposed to use an algorithm that routes to the market participant with the best probability of a fill. So now it appears the best probability of a fill is PSE because they are part of ARCA and probably have some auto-ex turned on for ARCA orders -- but they are the best probability of a SHITTY fill when other exchanges are on the inside. Smart Routing? Yeah, right. Nice algorithm...

If this is the way ARCA is going to function for listed stocks, not only will I not use it, but I will actively campaign against it on these boards and others.

I think most people think it still works the way it used to. It's way different now.

Any ARCA reps reading this, feel free to chime in and defend your system, if you can...

-- Dave
 
If you are trading listed only route to the NYSE. If you don't you may not get price improvements. That way you are on the orderbook and get matched if a big print comes your way. In the long run trading through the NYSE will pay off with better prices.
 
You are correct. That is what I intend to do. ISI/SuperDOT and take my chances with the specialist.

-- Dave

PS. It's not a great solution for me because the reason I used ARCA in the first place was for position management options (ie. trailing stops, stops that are not on the specialist's book, etc.) so I don't have to sit at my computer every second.

I just wish RealTick would get its act together and offer these through a NON-ARCA system/source (as well as One Cancels Another orders -- how frickin' long does it take to implement this, Townsend? Jeez, you've been working on this feature for more than a YEAR!)
 
Originally posted by hedgez
how does such a big player like arca not have nx routing (direct plus)?
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Because the Arca Exchange is the competition to such a system. They want it to die. They don't want to help it.

-- Dave
 
You should consider using a stand alone execution system. It solves a lot of problems. It's bulky but it allows you to usa any data provider you want. If you are retail there is IB then there are the prop ones ABN Amero ISI Dot and Belzberg. I'm sure there are many more I don't know of.
 
I too discovered that ARCA no longer works like it used to for listed stocks. I used to use ARCA sometimes for listed stocks because it would still route through SuperDot and it was cheaper than ISI. But now that they have this ArcaEx thing you get filled with the PSE.

I found this out the hard way when I put in an order for a stock above the best NYSE offer (and he had decent size offered) and was filled above the ask by PSE.

So who is filling these ArcaEx orders? Do they fill out of inventory or something? I really don't understand this either. When I was filled over the offer I didn't even see PSE offering anything at my price.

Leland
 
I too am confused about arca exec. on listed stocks. However do think the market is moving faster than we see and that the size has actually been bought but not updated in the quotes? I see time and sales coming up quicker than the quotes sometimes.
 
Originally posted by LelandC
So who is filling these ArcaEx orders? Do they fill out of inventory or something? I really don't understand this either. When I was filled over the offer I didn't even see PSE offering anything at my price.
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Good questions, Leland.

The Order Routing Table on HRE has not been updated yet (the way things will change with SM and the ECN mergers, it will be a huge update for that table and I don't blame Alan for delaying this -- I would, too...)

http://www.hardrightedge.com/work/orderrouting.htm

MBT's Order Routing Grid is not up to date.

http://www.terranova-mb.com/waters/orderrouting.pdf

Mr. Routing & Execution (Rogan LaBier) is nowhere to be seen online (just a Google search, maybe someone knows where he is and if he will update his routing book...last Amazon customer review was a year ago; Rogan's tools-of-the-trade.com domain expired Jul 12 and has not been renewed; he is not listed as presenting at the Online Expo next week.)

http://www.tools-of-the-trade.com/

TerraNova's order routing section is obsolete.

http://www.terranovaonline.com/tno_p&s/Rules.asp

ARCA's web site doesn't have anything about it except this:

http://www.tradearca.com/ecn/eligible_stocks.asp

They go into intimate detail for the Naz side.

It appears that -- if you compare the detailed info about the Naz side routing with the pathetic info about the listed side routing -- ARCA doesn't want anyone to KNOW how it works.

Point is: Does anyone have a site or white paper or SOMETHING that details how ARCA routes listed now?

The fact that I tried that hard to find the ARCA listed routing algorithm and still have nothing is a little ridiculous...

-- Dave
 
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