IB routing to PRIMEX

yes i c your point, and you're right in a way.

what is a danger though is that if primex becomes liquid (maybe already is), more and more people will move their bids/offers to the invisible zone. There's no incentive to post a bid of offer in that case. what you get is the real market becomes invisible.

Maybe this isn't even a danger, maybe it's the best way to go for the nasdaq.

the fees by the way are to become 1 cent per share for taking liquidity, so nobody will want to use it anyway, if the mm's ahve to pass it through to their customers.
 
Originally posted by Bachelier
yes i c your point, and you're right in a way.

what is a danger though is that if primex becomes liquid (maybe already is), more and more people will move their bids/offers to the invisible zone. There's no incentive to post a bid of offer in that case. what you get is the real market becomes invisible.
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You're right, like with all third market crossing networks of this kind (e.g. eVWAP, POSIT etc.) if too much liquidity should migrate there from the primary market you end up with a situation where the tail wags the dog. Price discovery becomes inefficient since just a small part of the total liquidity determines the price boundaries for the majority of trades. The SEC has imposed relative volume restrictions for most crossing networks to prevent such situations from occurring.

Dave
 
I've tried to test primex with few orders and it still returns with an invalid order error.
That was on nyse stocks, orders were to buy at the bid or bellow.

Any ideas why the invalid response?

Thanks

Josh
 
I trade relatively large size everyday on the nasdaq (half a million shares currently) and i guess i have to adapt. I hope my firm's trading system will allow me to join the crowd in Primex.. (and why not get rid of the ecn's)

well, experience will tell when to use primex and when not. In any case it makes matters more complicating as they are already.
 
Bachelier, dude, if you're doing 500k a day, you shouldn't be hoping for anything, you should be demanding, telling, and insisting.
 
Originally posted by the_dude
Buh-BYE PRIMEX!

I did notice faster fills with BEST today but wasn't watching the routing that close. Where did you hear that?

Thanks,

Johnny
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Dlincke:

I read your response on 1/27/02 to my Post and what I thought I was trying to say is exactly what you said. I agree 100% with your way of explaining the way we think IB is or should be using PRIMEX and the potential for time delays. Thanks for the response and comments.

Catoosa
 
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