Holy Cr*p ISLD blocked from providing QQQ ,DIA, and SPY full book quotes

Originally posted by hardrightedge

Dear IB Trader:
Due to regulatory action taken by the SEC against Island, Island will no longer be able to disseminate its quotes on the QQQ, DIA, SPY, SMH, and MKH Exchange Traded Funds (ETFs) as of Monday, September 23rd. This means that the Trader Workstation will no longer display Island quotes and that Smart Order Routing will no longer consider Island as a destination for the aforementioned tickers. IB will continue to route to the NYSE, Redibook, Instinet, and Arca, and will display market data for these destinations as well as the Amex. In addition, customers may continue to send limit orders directly to Island without knowledge of Island's quotes. For additional information, see http://www.island.com/etfchange.asp.


-Interactive Brokers
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I think I have a suggstion for IB (but maybe someone with a multi-million dollar account should make it to them):

Instead of the SMART algorithm they will be using for SPY on Monday, namely

TMBR IOC -> marketable yes/no ...

why don't they do the following:

TMBR IOC -> ISLD IOC -> marketable yes/no ...
 
Originally posted by hardrightedge
It seems to me REDI will fill this vacuum in a hurry. I remember a time when ISLD was down all day. Thought liquidity would dry up. No way. All the other ECNs turned more liquid than ever.
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Dear IB Trader:
Due to regulatory action taken by the SEC against Island, Island will no longer be able to disseminate its quotes on the QQQ, DIA, SPY, SMH, and MKH Exchange Traded Funds (ETFs) as of Monday, September 23rd. This means that the Trader Workstation will no longer display Island quotes and that Smart Order Routing will no longer consider Island as a destination for the aforementioned tickers. IB will continue to route to the NYSE, Redibook, Instinet, and Arca, and will display market data for these destinations as well as the Amex. In addition, customers may continue to send limit orders directly to Island without knowledge of Island's quotes. For additional information, see http://www.island.com/etfchange.asp.


-Interactive Brokers
More...


:confused: not to worry, you can still send orders to island without knowledge of island's quote!:mad: what the heck!!! so the specialist/MM can still hold your order , they still get to see the order flow, etc., but not to worry, you can still blindly direct to island.

maybe L2 was designed to mess with people's heads, but if so, i like having my head messed with. at least i can see the bait ball moving... its why i trade the QQQs: they are slower moving, no uptick rule for shorting, ample liquidity, etc... in what possible way could this action make the market more transparent and fairer for the small investor. i cant see any advantage.

i think someone just pulled the curtain back and exposed the wizard!:cool: am i missing something here?
 
Heres what happens when you provide a good service and it becomes too successful - they shut you down -- the old boys network lives on -

I loved trading the spy's on Island - it was the fairest and quickest equity market around - no comparisons --

I believe the NASDAQ is coming out with their own version of ETF's shortly -- hopefully they will price them at 50 or 100 -- so we can some nice intraday moves !!!!!!
 
I had a couple question that I am confused on with this BS. First are they supposedly taking away the entire quote away from the market or just the depth so that you can only see the inside quote? The other thing is that I know several firms, such as the one I am at, have direct connections with all of the ECNs including Island. So when the island quote shows up in nasdaq stocks or ETFs, it is being sent from island and not diseminated thru the nasdaq market or NYSE/AMEX. It is done this way to make the quote more accurate and quicker than if it is routed thru the exchanges. Is this change still going to effect my view of the qqq or only the quote the exchanges send out? Hopefully that made sense.

As a side note, it makes you sometimes feel like we trade under a totalitarian regime, with no say in the matter. Seeing as we are the market. There are many big players beyond daytraders that used the ETF for trading and obviously many of them use Island. You would think in a supposed democratic system that the real players in game would be able to bring about change like a union does for employees. You would think in this low volume environment that the exchanges would want to promote as much volume and liquidity as they can, but many times it does not seem like it.
 
i heard the AMEX was gonna rebate you a tube of Vaseline with every order routed their way. with orders of 5,000 shares or more you get a box of kleenex too. :(

with enron, wcom and the rest, it is very encouraging to know that closing the island book was a top priority for the SEC. :eek:

i have a question from more seasoned traders: does the market still need the MM/specialist system? island seemed to operate alright without them?
 
First are they supposedly taking away the entire quote away from the market or just the depth so that you can only see the inside quote? The other thing is that I know several firms, such as the one I am at, have direct connections with all of the ECNs including Island. So when the island quote shows up in nasdaq stocks or ETFs, it is being sent from island and not diseminated thru the nasdaq market or NYSE/AMEX. [/B]
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Maybe someone who knows better can set me straight, but it appears to me that ISLD is tackling the problem by saying that all orders sent there will be forced into non-display mode regardless of how you send it. Orders marked as "non-display" are not displayed....I do not believe this means "non-display unless you are on the inside in which case you are displayed"...at least that's not how non-display orders have ever been handled (but maybe I'm trying to be too logical). I guess ISLD reasons that if NONE of their orders are displayed, then it is impossible to publish a quote that would cross/lock the market which would be against the rules they are being made to follow.

--Derek
 
As much as I like trading on ISLAND - I find it interesting that this was just announced - the same day they close the merger with INSTINET ???
 
Originally posted by traderjimbo
Heres what happens when you provide a good service and it becomes too successful - they shut you down -- the old boys network lives on -

I loved trading the spy's on Island - it was the fairest and quickest equity market around - no comparisons --

I believe the NASDAQ is coming out with their own version of ETF's shortly -- hopefully they will price them at 50 or 100 -- so we can some nice intraday moves !!!!!!
More...

Looks like it gonna be nasdaq trading all over again (like in 97). The only way to see some transparency and get a decent fill. I liked trading listed, but it gonna be BS in a year or two.

Sectors rotate so do the markets, gotta go where I can get a fair trade!
 
Man, what a thread!! Now you guys know how I feel about the NYSE and the games they play. These old boys on the hardwood floors just seem to be out of touch with reality. They still think they make the rules. I believe that they are desparate and these audacious tricks are evidence of that. Electronic traders are threatening to eat their lunch and so they are changing the rules. Seems like they're on the defensive, if not quite on the ropes.

Too, with the Amex about to trade Naz issues, maybe they're figuring, 'shoot, if we give'em the book on the spy's, they'll want the book on Softee, too.'
 
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