IB does not route to regional exchanges

Quote from nitro:

I am confused by this. How does routing to ARCA route to the regionals? It is just an ECN?

nitro
More...

Arca is no longer an ECN. It did a full converison to an Exchange. Now called the PCX to be more precise.

As for routing this is from their website,

"Connectivity breeds liquidity"
At Archipelago®, we're connected to all major markets such as NYSE®, NASDAQ®, The American Stock Exchange®, Regional Exchanges and ECNs. Through ITS, DOT, SelectNet, SuperSoes and direct links to market participants, we can offer you the liquidity you need to find the best price.

If you can pick arca in IB then Arca's smarting routing will route out if it can't match on it's book to the NBBO and if that happens to be a regional then the order will execute.

Bsulli
 
Never tried ARCA with IB, will try it out on Monday. As far as routing to ARCA, I am not routing to them, I routing through them. Sort of like a Smart order on IB, it will route to the best available quote, if it's a regional exchange, that's where the order will route. I think it all depends if your firm lets you route through ARCA as a proactive order.


shneed
 
Quote from Bsulli:



Arca is no longer an ECN.
More...

Has arca ever been an ECN? As far as I know, ARCA is a computer whose function is to generate fake bids and offers between $.02 and $.80 away from the actual bid/offer in order to confuse traders and routing algorithms.
 
Sadly, ARCA via IB does not route outside the ARCA book.

And I thought ARCA were the guys always ready to buy at 1 cent (always a firm bid there at that price).
 
Right - ARCA orders from IB are not allowed to route away from ARCA.

ARCA (from brokers other than IB) can be used to hit regionals because they participate in ITS (now as PACX, previously via the NASDAQ Intermarket (NASD)). ITS is the ECN-like thing that links the NYSE with the regionals and the NASDAQ Intermarket.

You see 0.01 bid, offered at ~2x the last trade quotes published by ARCA because those are the quotes by an MM who doesn't want to be any further inside, and needs to continuously quote (I think). BTW, anyone know who this is, or are there many of them?

Lobster: :) :)
 
I think it's actually ARCA itself posting those quotes. Has something to do with having to be on both sides of the market. That's my understanding anyhow.
 
ARCA is an exchange and as such has access to ITS which sends a trade request messgae to regional exchanges if those bid and offers are marketable with an order on ARCA.

It is not likely you will receive any price improvement with this method of trading.

People usually prefer the regionals for large orders they are hoping for some price improvement on. So you may not find ARCA to be a good replacement, since they only route out to hit bids and offers.

* INCA (instinet) charges more for routing out Nasdaq orders than it does for posting them only to the INCA book.

* Does anyone know if ARCA charges more for routing out?? Especially for listed stocks??

(testing the color functions... sorry if it is all wrong below)
:)
 
Yes, ARCA charges $0.004/share to route to other destinations for listed stocks. In contrast, orders for listed stocks executed on ARCA are free.

BTW, sure was nice of ARCA to instigate this listed price war, giving us listed traders a big raise. I paid an average of $0.0005/share in ECN fees this month, down from $0.0025/share before the price war :)
 
You must log in or register to reply here.
Back
Top