Level II "flashing"?

Quote from VinnyB:

Great discussion.

Thanks all.

Testing the market is what I'm thinking also. How the heck is the placing/cancelling going on that quick? What kind of platform?

We're talking on/off/on/off like a light switch quick. Just one side at a time.

Bid on/off about half dozen [or more] times and then a fill - usually 100 shares.

See this on many stocks under 500,000 per day.

Thanks...V
More...

care to share some of these names?
 
I hear that flash orders are likely to be banned on NASDAQ next year.

Flash orders are submitted by firms that have co-located servers in the actual exchanges. It is known as 'flash messaging' and is a menace to most traders trying to place a trade only to find that the liquidity disappears as soon as they click the button, the trade is not filled and the prices move away such that you'd have to accept a worse price to get a trade filled immediately.

The very liquid stocks don't suffer in the same way because there is usually genuine liquidity. The illiquid stocks suffer the most from flash orders, which appear to be there to spoof you.
 
Many times it will be somebody posting a market based on the relative value of another making it look like mindless tinkering.
...greg
 
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