Is this legal?

Originally posted by esc_trader
I have seen this lately - usually INCA though matching your bid or offer or beating you by .01. I even have a computer program that will do this (I dont currently use it). They do it so fast, so yes it certainly seems automated on their part.

Try this - offer when you really want to buy (or vice versa) - when they match or beat your price - take out their order! Make their little program work for you. I have gotten alot of .01-.06 price improvements this way lately.
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yep, i do this, too. i believe it's legal in US stock exchanges (called "spoofing" in options exchanges, and is not permitted b/c the options MM morons can't make a living with fair rules).

i also "walk" pegged orders up (or down) just for the hell of it sometimes, especially if one of those imbeciles is trying to step in front of me when i'm trying to enter a position. i wonder how much $$$ i've cost them...oh well, life's tough....:D
 
"pegging" and/or "banging" features are completely legal.......if it's (CVC) that you're doing.....it's almost always just a penny spread..so just take the offer.....I play that stock often..and it seems that the specialist is fair compared to some of the specs out there.....
 
If you are long, and the MM is shaving one cent ahead of you on the bid, and you want to protect your long......bid at whatever price necessary to close the spread a little by the 1 cent shave the MM will take. Of course, you want to try to do this so only he, and not you get hit on the bid.... (or offer for that matter)
 
It seems Jonny344 and Tony1 are correct.It seems that the arca exchange is at the pacific stock exchange.They are "connected".Why do they both show the order on level2 for nyse stocks ?Beats the hell out of me.
I still maintain there is no fair order line and MM,s regularly push in front of ECN's.
 
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