i agree with all on here it seems arca fills naz short instantly and inet does not. my question is why can arac do it and inet not? second thing is remembeer arac reroutes a ton on market orders so its another .001 which means striking the bid costs .004 in liquidity and most importantly i've enver had any luck chasing a naz stock down as they always boucne when you chase them down so jsut wait for the bounce
Best Way to Short on Nasdaq
- Thread starter kelly74
- Start date
Because the ARCA Exchange apparently makes their own rules. God bless em.
So, you mean 'nonexistent shithead' bless them? But no, really. Why do they make their own rules?
ARCA market sell/short is proactive, meaning it "chases" the market lower automatically without you having to place a limit order, so you catch the first uptick so fast it feels like you almost short on a downtick, but ARCA exchg is not exempt from the uptick rule as has been mentioned.
This is what I can find on the archipelago website:
What is the ArcaEx short sale rule for OTC stocks?
The NASD's short sale rule or "bid test" does not apply to transactions in NASDAQ-listed stocks executed on ArcaEx. The NASD Rule 3350(a)(1) & (2) specifically limits the application of the NASD's bid test to those trades executed on or reported to the ADF and to NASDAQ. Further, the NASDR has advised representatives of the Archipelago Exchange that the NASD's rules do not apply to NASD members when those members execute orders in OTC stocks on the ArcaEx. NASD members with questions concerning the applicability of the NASD rules should contact NASDR directly. Orders in NASDAQ stocks are not subject to the bid test as long as the order is matched in the ArcaEx Book. Short sales that are routed outside the ArcaEx Book will be subject to the short sale rules of the away market. Limit Orders will be matched internally down to the limit price of the order and potentially outside the National Best Bid (NBB) if routing the order to an away market would not satisfy the away market short sale rule. Any unexecuted portion will be posted to the ArcaEx Book. Market orders will be matched internally or externally at the best available price. In a down bid market when the NBB quote is from an away market with a bid test, market orders will be posted to the ArcaEx Book at the NBB until they are eligible to trade at the NBB or better.
What is the ArcaEx short sale rule for OTC stocks?
The NASD's short sale rule or "bid test" does not apply to transactions in NASDAQ-listed stocks executed on ArcaEx. The NASD Rule 3350(a)(1) & (2) specifically limits the application of the NASD's bid test to those trades executed on or reported to the ADF and to NASDAQ. Further, the NASDR has advised representatives of the Archipelago Exchange that the NASD's rules do not apply to NASD members when those members execute orders in OTC stocks on the ArcaEx. NASD members with questions concerning the applicability of the NASD rules should contact NASDR directly. Orders in NASDAQ stocks are not subject to the bid test as long as the order is matched in the ArcaEx Book. Short sales that are routed outside the ArcaEx Book will be subject to the short sale rules of the away market. Limit Orders will be matched internally down to the limit price of the order and potentially outside the National Best Bid (NBB) if routing the order to an away market would not satisfy the away market short sale rule. Any unexecuted portion will be posted to the ArcaEx Book. Market orders will be matched internally or externally at the best available price. In a down bid market when the NBB quote is from an away market with a bid test, market orders will be posted to the ArcaEx Book at the NBB until they are eligible to trade at the NBB or better.