ARCA uses SuperSoes Now?

D

danger68

Prior to SuperSoes, ARCA used SelectNet Preference to send orders to Market Makers, but now that SNet is a non-liability order-delivery system, does ARCA use SuperSoes instead to get to the market makers?

I looked throught the ARCA website and they do not specify if the use SuperSoes or not.

Does this mean that the ARCA route goes to the ECNs directly (if it has a direct connection to the ECN), uses SNet Preference to go to the ECNs that it does not have a direct connection to, and SuperSoes to go to the Market Makers?

If ARCA uses SuperSoes to execute against market makers, then isn't it better to use the regular ARCA route instead of ARCA NOW because like that the order is sent to the ECNs (instantaneous execution) and to the Market Makers (.8 sec delay according to NASDAQ) instead of only to the ECNs like ARCA NOW does? Is ARCA NOW essentially useless "NOW?"

Furthermore, if ARCA uses SuperSoes to execute against market makers, then why even use SuperSoes, why not always use ARCA instead?

Best of luck,

Dan
 
Dan I was surprised to find that all the brokerage firms at the Vegas show were high on ARCA! I have not used ARCA in the last 3 yrs. I do plan to try them again soon. They said that orders placed outside the market would fill in nano seconds even if it required taking out several participants to fill the order including SuperSoes. No one can hold ARCA orders like they did in the past. Or at least thats what "they" said.
 
>Furthermore, if ARCA uses SuperSoes to execute
>against market makers, then why even use
>SuperSoes, why not always use ARCA instead?

Because letting ARCA hunt around for the best price is almost without exception measureably slower than nailing the liquidity yourself. If you are not into the LVL2 routing game, then something like ARCA, REDI or broker based (IBs BEST, etc) is likely the best way to go.

From my everyday tests, I have found IBs BEST to be faster than ARCA. In fact, come to think of it, I've found almost everything to be faster than ARCA. I hope that the ARCA-REDI merger uses the REDI logic moving forward.

JB
 
danger68,

I looked throught the ARCA website...

Please post the url of that site, can't seem to find it. I've tried the obvious two: arca.com and archipelago.com, neither worked.
 
Turok,

letting ARCA hunt around for the best price is almost without exception measureably slower than nailing the liquidity yourself.

My understanding is that ARCA first checks it's own book, then checks against ECN's it has a direct connection to, then selectnet's ECN's it doesn't have a direct connection to, then SuperSOES mm's (for NMS stocks). If it's a limit order and the market has moved away from your price it posts in it's book.

As to nailing the liquidity yourself, in this day of practically all mm's posting no more than 100 shares (unless they're purposely posting large size to push the market in the direction they want) it's almost impossible to get fills of any decent size from mm's, except in the most liquid stocks -- unless, that is, you go far enough outside the inside to find an mm with size, selectnet pref him and hope for a fill (while he sits on your order making his decision). When prices are moving fast the best bids and offers on ECN's disappear almost immediately, moving far away from the inside. So I'm interested in what size you generally play and exactly what you do to nail liquidity and get fills in fast moving markets. Thanks.
 
>So I'm interested in what size you generally play
>and exactly what you do to nail liquidity and get
>fills in fast moving markets. Thanks.

I only play 3-500 shares and I only play a basket of stocks that are quite liquid. If I was attempting to move size my methods would have to change.

Having a well thought out hotkey setup and well practiced plan (it becomes second nature) allows me to hit ECN liquidity as it pops up and go for SuperSoes it the ECN's are too far away. Practice makes perfect.

JB
 
Thanks Turok, and thanks Voodoo for the url. I usually try google but this time it slipped my mind.
 
So can anybody say for sure that ARCA routing:

1) Checks it's own book
2) Checks the ECNs it has a direct connection to
3) SNet Preferences the ECNs that it does NOT have a direct connetion to
4) SuperSoes the MMs

Furthermore, why even use ARCA NOW (that only goes to the ECNs that ARCA has a direct connection to) if ARCA (without the ARCA NOW feature enabled) does that and a lot more?

Thanks and best of luck,

Dan
 
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