Nms ?

Sky123987 · Oct 13, 2008

A Sell mkt order comes in for 200 shares ROUTED directly to ARCA.
What scenario is correct.

A) Filled @ 15.50 ARCA and 15.49 ISLD
B) Filled @ 15.50 ARCA and 15.41 ARCA

DEPTH OF BOOK FOR BIDS
_____________________________________

ARCA: (1)15.50
ISLD: (1)15.49

ARCA: (1)15.41
ISLD: (1)15.41

Sky123987 · Oct 13, 2008

WallstYouth · Oct 13, 2008

Quote from Sky123987:

A Sell mkt order comes in for 200 shares ROUTED directly to ARCA.
What scenario is correct.

A) Filled @ 15.50 ARCA and 15.49 ISLD
B) Filled @ 15.50 ARCA and 15.41 ARCA

DEPTH OF BOOK FOR BIDS
_____________________________________

ARCA: (1)15.50
ISLD: (1)15.49

ARCA: (1)15.41
ISLD: (1)15.41

Filled @ 15.50 ARCA and 15.49 ISLD

speculatus · Oct 14, 2008

Try it out

I'd say if NBBO on bid side is on ARCA, by default you'd sweep ARCA book (scenario B) unless you use specific order type instructing what to do with the reminder (ord_size - top_of_book_size).

http://www.nyse.com/equities/nysearcaequities/1157018931913.html

At any rate, I'd never sweep the book with market order...

C99 · Oct 14, 2008

Quote from WallstYouth:

Filled @ 15.50 ARCA and 15.49 ISLD

yes, unless specified in order such as nyse DNS do not ship order, the remainder will be filled on isld. you usually pay a little extra commission if order is shipped out.

trom · Oct 14, 2008

Quote from WallstYouth:

Filled @ 15.50 ARCA and 15.49 ISLD

I'm not so sure...isn't only top of book protected?

speculatus · Oct 14, 2008

Only top of book is protected, and unless you specify otherwise, the rest size would sweep the book.

Think about it: why a market center would ship the rest of the order if it doesn't have to and loose commissions on an execution? Remember, commissions and market data are two major income venues for those guys.

trom · Oct 14, 2008

Quote from speculatus:

Only top of book is protected, and unless you specify otherwise, the rest size would sweep the book.

Think about it: why a market center would ship the rest of the order if it doesn't have to and loose commissions on an execution? Remember, commissions and market data are two major income venues for those guys.

Right.

So this would fill

ARCA for 100 15.50
ARCA for 100 15.41