Market order questions

C

CasperCRF

Can some one clear up these 3 situations for me?

1. On NYSE, lets say the specialist speads the stock 50.25 x 50.50 by droping the bid from 50.48. Lets say I want that next print to go long, who has priority a) A limit order at 50.30 that was on the books before the spread happen. b) A limit order at 50.30 that was entered after the spread. c) a market order entered after the spread. In this situation, lets say he's going to print 50.30 or lower so the limit will get triggered.

2. NYSE that's trading at 50.48 x 50.50 and the specialist is only showing 100 shares on the offer and there are no ECNs. Lets say I enter a ARCA market order for 1,000 shares and the next ARCA offer is at 50.55. Can I get filled above the NYSE offer?

3. NASDAQ stock, i have 1,000 shares long and I hit ARCA market sell. the bids look like this:

ARCA 50.50 200
INET 50.50 200
BRUT 50.50 600

ARCA 50.49 800


Now would I get a full fill at 50.50 or will an ARCA market sell only hit the ARCA books and ignore what else is on the bid?
 
hey casper,

for 1. a market order to buy is looking at 50.50, unless he price improves which is not likely. the bids have no relevance to that order since those are other orders to buy. as for who has priority on the limits, the first on the books should get the trade unless it's allowed to be traded through because the newer bid is a block trade, etc.

for 2. depends. they should give you the 100 @ 50.50 because that's the best bid and they can't cross that, but nyse is notorious for already being filled without a report and the offer is no longer good, so you may have to be filled on what arca has at 50.55, for whatever size that is.

for 3.) the whole sweep of the best bid was attempted by the sec awhile ago and was unsuccessful (too much technology cost for the firms) so there's no "requirement" that they give you more than the 200 shares at 50.50 before filling you of of their next bid. that said, i know arca does route to brut and others to fill off of their best bid if it's better than theirs (not the case in your example)

hope this helps
-Rich

Quote from CasperCRF:

Can some one clear up these 3 situations for me?

1. On NYSE, lets say the specialist speads the stock 50.25 x 50.50 by droping the bid from 50.48. Lets say I want that next print to go long, who has priority a) A limit order at 50.30 that was on the books before the spread happen. b) A limit order at 50.30 that was entered after the spread. c) a market order entered after the spread. In this situation, lets say he's going to print 50.30 or lower so the limit will get triggered.

2. NYSE that's trading at 50.48 x 50.50 and the specialist is only showing 100 shares on the offer and there are no ECNs. Lets say I enter a ARCA market order for 1,000 shares and the next ARCA offer is at 50.55. Can I get filled above the NYSE offer?

3. NASDAQ stock, i have 1,000 shares long and I hit ARCA market sell. the bids look like this:

ARCA 50.50 200
INET 50.50 200
BRUT 50.50 600

ARCA 50.49 800


Now would I get a full fill at 50.50 or will an ARCA market sell only hit the ARCA books and ignore what else is on the bid?
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