Direct Access Firms & Trading Mechanics

Originally posted by Seanote
During market hours you have to add .01 to the inside bid and post order direct to ISLD. Pre and Post market you can short on a downtick. REDI is the only ECN that wont let you short on a downtick Pre mkt if the price is lower than the previous days close at 4:00pm. We have ISLD, REDI and ARCA for listed right now during mkt hours. If your firm only uses one...shop around and you'll find a better firm.
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No, they have access to almost all of the ECN's, if my memory serves me correctly. The appeal of the ETF's (to me) is that you CAN short on a downtick. Or am I missing something? Woudn't be the first time. :confused:
 
Originally posted by airspeed
for the info. I asked because I'm going to change brokers soon and the new one, I found out today, doesn't let me trade listed stocks on the ECN's. As I send some of my SPY trades to island, I'll probably have to change my way of trading these issues if I can't use an ECN for a fast fill. ALso, my understanding is that there's no shorting on a downtick for any of the ETF's. Strange, 'eh?

You can short ETF's on downticks at any time.
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I'm going to continue this thread by starting a new one in the direct access broker section. I'll use the name of the brokerage and hopefully someone who trades there will see it and help me better understand this policy.

Many thanks,
Jim
 
Later this evening I will start 1 or 2 new threads in the Trading Forum and will begin talking about trading strategies and technical analysis like some of us mentioned earlier. I'll start with playing the gaps and some TA and see where that takes us.
 
Originally posted by Seanote
By Smart ECN I mean access to all 9 ECNs. ARCA, ISLD, INCA, MKXT, NTRD, BTRD, REDI, ATTN and BRUT
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So you are referring to some sort of order routing algorithim unique to a particular firm whereby the firm has direct connections to (all) ECN's and then will seek liquidity with each and all via a pre-programmed sequence/logic...is this what you mean by "smart" ECN?

Originally posted by Seanote
I'm not anti MM when it comes to executions, but I will target an ECN any chance I have first!
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Even when say INCA and a MM are at the inside -and you know you can get an instant fill via SS-youwould still route to INCA with its likely higher cost?

Originally posted by Seanote
ARCA will re-route your order if there is better price available BUT they use SNET to direct that order to the ECN or MM
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ARCA will now only route to a MM via SUperSOES and only uses SNET for ECN's with which it does not have a direct connection

Originally posted by Seanote
Check you ECN fees with the firm you trade at....ISLD typically is free unless you trade over 1,000 shares excluding your base comm.
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Practically every firm I have seen charges at least .025 per share for ISLD (if taking liquidity)....tell us some of the free ones :)

Generally I agree with your posting in finding liquidity in fast stocks. I do have a "smart" ECN as you called it (all ECN volume is aggragated into one pool of liquidity for single click/hot key access), and use it more often than not. However we also know that in fast markets, the ECN volume is not as readily available, and I will usually put out a SOES order (Delta order as you called it) simultaneously and let it cook while I am going for the fleeting ECN volume. If I get filled by the ECN first, I cancel the SOES. WOrst case, I get a double fill and decide quickly whether I want to keep the extra shares.
 
Seanote, I just wanted to make a quick correction on your earlier post: ARCA used to route to MM's via Selectnet prior to the integration of SuperSoes. Today, if they route to a MM they use SuperSoes to route orders to them (For Small Cap they still use SelectNet, b/c that's all that's available for on those stocks). Market Makers will use SelectNet to come to ARCA, but ARCA using SuperSoes to direct orders to them [General Rule is orders are SOESED out and SelectNeted in]. As for how ARCA routes to ECNs, they have direct connections to many of them including ISLD, INCA, BTRD and REDI.
 
Originally posted by TNO-Mike
Seanote, I just wanted to make a quick correction on your earlier post: ARCA used to route to MM's via Selectnet prior to the integration of SuperSoes. .......As for how ARCA routes to ECNs, they have direct connections to many of them including ISLD, INCA, BTRD and REDI.
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TNO-Mike-too late I already corrected him....:)

You say "many of them and then list 4 out of 9....are there other ECN's with which ARCA has direct connections at this point in time?
 
I was actually on the phone with ARCA when I posted, just to clarify. I was laughing after I saw you had already posted. The ones I listed, which are the most liquid ECNs they have direct links, your earlier post about using SNET to route to the others is correct.

:)
 
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