Quote from Hydroblunt:
I can tell you never really traded NYSE.
Reg NMS basically took the NYSE edge and split it up among the main big name firms. Whoever gets the market order with the best NBBO, get to take the rest of it and sweep their own book, ignoring better pricing on other routes. It's an easy arbitrage opportunity, just like the specialists used to do when they would lock up market orders, "price improve" & "provide liquidity" through insane spreads.
Seriously, think about the rule and ask yourself if it makes sense. How in the world is benefitting anyone but the big name firms who handle this order flow. If I send a market order, I don't want it to be limited to only one route. In fact, why should I even worry about where I send it to, I would prefer one single pipeline where everyone's orders are matched. This is what Reg NMS pretends to be, but in fact, it's nothing more than another gimmick meant to line the pockets of Wall Street.
Quote from Sky123987:
Wow that is quite interesting... I never knew that. I have a question to what you say regarding how it "doesn't benefit anyone but the big name firms who handle this order flow"
So if it is .25 x .26
.24
.23
.22
.21
You are sitting @ .23 and the sweep has to go down to .21 to fill all the orders.
This is what I thought... (tell me if I'm wrong)
Currently: you get filled @ .23,
Back Then: you'd get price improvement and get filled @ .21
But are you saying that you'll still get price improvement because of the sweeps that "are allowed" to go on? if that's the case wouldn't that benefit the guys who are placing "buy limit orders"
Quote from Klamath:
Today I placed a limit order to sell short CUB (AMEX) at 46.19 with TD Ameritrade. At least 15 minutes after I placed the trade, it spiked up to 46.38 but I didn't get filled.
I talked to someone in TD Ameritrade trade resolution and he said it was an "intermarket sweep". Is this legit? Does it have anything to do with being an AMEX stock? I've never had anything like that happen to me before.
Any insight would be appreciated.
Quote from speculatus:
Where have you been in the last couple of years? RegNMS took NYSE edge? You are kidding me... Your dream is your problem, fragmented order flow is the reality, and without RegNMS the picture was way worse for poor investors.
I'm sorry, but I still don't see any single point from your posts...
BTW: I've been tape reading and trade NYSE listed stocks exclusively, and very much familiar with NYSE rules and specialist role in the order flow.
Quote from Hydroblunt:
You're asking me where I have been the last couple of years when you can look up my posts which talked about the transition YEARS ago, while you were still figuring out what a bid & offer were.
If you do not see the scam in reg NMS, then you are hopeless. The reason tape readers made money with NYSE is because we understood the scam and tried to get on the right side. Now that scam has been split up among the top tier brokers and fragmented away so the daytraders can't recreate the old NYSE strategy. Yet the end result for the small time investor/retail trader is the same, prints & prices occur that most can never get the fill on. And it's actually legitimized vs. being able to call NYSE and ask for a correction (rarely effective, but still)
Hmm, isn't that the situation described by the thread starter.
It's a game of connect the dots, I suggest you try the child version sometime. The events over the past 7 years paint a pattern of who really benefits with Reg NMS at whose expense. To put it bluntly, it's a scam, an esoteric edge for a few select.
Quote from speculatus:
One possible scenario - SR probably already took all liquidity on all the top of books and decided to route out the rest to AMEX (say commissions/rebate fees were the best on AMEX in that particular case). If SR would really "smart", it should consider book depth on all exchanges and fill the order. But not SmartRouters are so smart, and it requires to have book depth subscription, which cost some bucks.
Quote from Klamath:
So a "non-ISO" order wouldn't execute book depth automatically? I thought that you had to specifically place an ISO order to not execute book depth. I thought that was the point of it.