Island to participate in SuperMontage

Originally posted by def
maybe i missed something here, does this mean price time priority will not be supported with supermontage? If it is, then how can they shave you per your definition.
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yes, it will be, with an additional perk: price, time, FEE consideration. incoming marketable orders will be filled at the bid/ask in the following order;

1) price,

2) does the marketparticipant charge a FEE or not -obviously marketparticipant without a fee will get fill priority- , and only if the incoming order has been marked as a price/time/fee considering order, default is just price/time, but every trader with a half brain will want fee consideration.

3) time
 
Originally posted by candletrader
but it seems that soon ISLD traders will not be able trade with eachother...
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We will still be able to hit ISLD bids and take ISLD offers directly as we do now using direct connections via our trading platforms. Thus, if I offer stock via ISLD and you decide to take it and click your buy ISLD button (NOT your buy SOES-or whatever it will be called- button), you will get it! The only scenario here is that if -at the same instant-ISLD became the ranking Market participant for the next SOES/SuperMontage execution, then some other buyer may actualy take the same offer. THus two buyers take the same offer...this is the concept of dual liability that was one of the major issues with ECNs joining SOES/SuperMontage. BUt at that point it is ISLDs problem as both orders would be filled and the extra sale-I suppose-is a propietary position of ISLD.
 
Originally posted by DATTrader


We will still be able to hit ISLD bids and take ISLD offers directly as we do now using direct connections via our trading platforms. Thus, if I offer stock via ISLD and you decide to take it and click your buy ISLD button (NOT your buy SOES-or whatever it will be called- button), you will get it! The only scenario here is that if -at the same instant-ISLD became the ranking Market participant for the next SOES/SuperMontage execution, then some other buyer may actualy take the same offer. THus two buyers take the same offer...this is the concept of dual liability that was one of the major issues with ECNs joining SOES/SuperMontage. BUt at that point it is ISLDs problem as both orders would be filled and the extra sale-I suppose-is a propietary position of ISLD.
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How can 2 buyers take the same offer,even if ISLD is a Supermontage participant? Wouldn't it be the same situation if 2 traders with direct ISLD access go to take an offer;someone had to have put in their order 1/1000 of a second faster and would get it.
 
We're doing some experimenting here at the ol' Bright Headquarters...with Isld (for now) to check out the price priority...and I see that I can enter tenth of pennies to have my orders show up in L2 ahead of others on Isld. This is not new...but the question arises:

Will SMontage allow the MM"s to "tenth of penny us' (or worse, I've seen 3 decimal places)...on Isld orders? If they can do it, it will be likely that they can automate it when they want to.

Are you guys using fractional cents to get orders filled (some of my guys are)?

DAT, Candle, et al....help me out....

Don
 
I believe ISLD allows users to enter prices up to 4 decimal places; I don't know about other ECN's...if someone knows,please post.
 
I see the 4 decimal places, and wonder if that is going to remain with SMontage? I'm not sure my clearing firm will translate the sub-pennies...?
 
Originally posted by Don Bright
I heard this might happen, but damn, I don't think this will bode well for traders in general (especially OTC traders). My initial response is one of minor outrage, seeing Isld cave in to the NASD (nothing new in this industry, but still unexpected). I'm making calls....see if there is any good news to this....
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LMAO

Don
Thanks for being so "concerned" about us OTC traders.
Maybe now is a good time to start GENLTY nudging newbies in the direction of listed stock trading under the Bright "family"?
Bright is after all a part of GS, right?
Hehehe....
 
Originally posted by Don Bright
We're doing some experimenting here at the ol' Bright Headquarters...with Isld (for now) to check out the price priority...and I see that I can enter tenth of pennies to have my orders show up in L2 ahead of others on Isld. This is not new...but the question arises:

Will SMontage allow the MM"s to "tenth of penny us' (or worse, I've seen 3 decimal places)...on Isld orders? If they can do it, it will be likely that they can automate it when they want to.

Are you guys using fractional cents to get orders filled (some of my guys are)?

DAT, Candle, et al....help me out....

Don
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I use fractional cents for a lot of my island bids/offers to get ahead of others in line. However, I don't think Supermontage will allow fractional cent executions (SuperSOES doesn't). Basically, I think this whole thing will simply allow island bids/offers to be hit by Supermontage liquidity in addition to just direct fills from other island subscribers.

Here's my interpretation of how it would work (I could be wrong):

For direct island executions, bids/offers are filled by price first (taking into account fractional cents), then time stamp. For Supermontage executions, only the time stamp would be relevant at the inside market since fractions would be irrelevant. Island bids/offers would be behind all the market makers in line and ahead of more expensive ECN's (assuming SM users choose the "price/time with fee consideration" execution priority option). However, if my island $10.002 bid got hit by Supermontage, I would get filled at $10.00 even because Supermontage does not recognize fractional cents. This is currently the way LSPD works on SOES.
 
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