Lime Brokerage fined $625k by FINRA

[GRULSTMRNN]

Here is what happens when exchanges promote algorithms that serve a few but hurt the large majority of other traders. Now they pay the price. I still hold my ground that anyone who quotes without the intention to get filled (or only partially filled) should be banned. Of course those who submit orders without the intention to get executions (or only partial fills) are only part of the problem:

https://www.google.com/amp/s/www.ws...ins-in-runaway-trading-algorithms-11572377375

 

[bone]

CME is perpetuating the problem by using Pro-Rata order matching in the Eurodollars - which incentivizes order pumping. It’s all on them. Switch to 100% FIFO - problem solved.

In fact - Pro Rata is a nightmare waiting to happen. All it’s going to take is someone sweeping the book for 100K...

Pro Rata forces traders to bid and offer WAY more than they really want in order to share in the fill splits.

 

[raVar]

CME is perpetuating the problem by using Pro-Rata order matching in the Eurodollars - which incentivizes order pumping. It’s all on them. Switch to 100% FIFO - problem solved.

In fact - Pro Rata is a nightmare waiting to happen. All it’s going to take is someone sweeping the book for 100K...

Pro Rata forces traders to bid and offer WAY more than they really want in order to share in the fill splits.

Amen !

Brother !

A billion times the above.

Can't even describe the conversations I've had on this very issue.

Honestly ... already know of people in the U.S. switching to ICE Europe over this very issue,

 

[bone]

Honestly ... already know of people in the U.S. switching to ICE Europe over this very issue,

Only ICE Energy is pure FIFO.

ICE has given us the Gradual Time Based Pro Rata (GTBPR) matching algorithm. NYSE Euronext interest rates are Pro-Rata.

 

[raVar]

Only ICE Energy is pure FIFO.

ICE has given us the Gradual Time Based Pro Rata (GTBPR) matching algorithm. NYSE Euronext interest rates are Pro-Rata.

Well, now you know what markets they are trading ...

 

[bone]

Well, now you know what markets they are trading ...

Getting filled first on Brent Crude just means you’re the first to get your ass run over

Buying the bid in Dec ‘20 Eurodollars is way different than buying the bid in Dec ‘19 Brent

 

[GRULSTMRNN]

Cannot agree more. But funny how the same @raVar likes your post who everywhere else bitched in defense of pro-rata algorithms. And I just logged out to see his hilarious post. In 2 other forums he said the precise opposite.

Anyway, it may take time but I believe the time will come when all those multiple exchange venues for one and the same product (equities), all this pay for play (special privileges), all those unfair advantages (earlier data access as function of quote size) will vanish because it destroyed fair and equitable markets. This past sentence alone caused an absolute tirade by @raVar.

CME is perpetuating the problem by using Pro-Rata order matching in the Eurodollars - which incentivizes order pumping. It’s all on them. Switch to 100% FIFO - problem solved.

In fact - Pro Rata is a nightmare waiting to happen. All it’s going to take is someone sweeping the book for 100K...

Pro Rata forces traders to bid and offer WAY more than they really want in order to share in the fill splits.

 

[raVar]

Getting filled first on Brent Crude just means you’re the first to get your ass run over

Buying the bid in Dec ‘20 Eurodollars is way different than buying the bid in Dec ‘19 Brent

Unless it is not dealing with outrights ... and would be specific to periodicity