BEST_ECN for QQQ

  • Thread starter Thread starter dkamp
  • Start date Start date
D

dkamp

Most brokers seem to have a blind spot when it comes to supporting QQQ orders via ECNs (Datek's default algorithm, for example, is as likely to send your order to AMEX, where it will sit for 30 seconds or so, as it is to ISLD, and they don't support direct orders to ISLD). With respect to IB, the last I checked they are missing support for QQQ orders via BEST_ECN.

Since IB keeps attaching new features to their BEST routes, I think it's about time that they add support for QQQ via BEST_ECN (i.e., that they figure out that QQQ is now largely being bought and sold via ECNs - last month ISLD beat out the AMEX for QQQ volume). I have not heard from them any good reason for not doing this, other than the one that QQQ is not a Naz stock, but seems to me this is just a software issue, not an exchange issue (i.e., BEST_ECN should work with any stock traded on an ECN).
 
i believe the issue is a legal one. Since the NYSE listed QQQ's they are no longer considered OTC and any type of "best" algorithm must go to the market with the best price.
 
Unbelievable. Any other laws like that we should know about (i.e., that distinguish between what a computer and a human are allowed to do)? I assume that this would also affect an individual who is automating their own trading? Or is this just a restriction on brokers?

Does anyone know of a web site or book that has outlined these computer vs. human trading laws? Thanks.
 
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