nx matching process?

J

jem

I have recently complained about fills on the NX---Last two fills-one got me 23cents on a thousand and I was denied today. However for the last forty minutes I got the best nx fills I have had in months. Roight after I put out what I considered to be a great argument.

I have noticed with the liquid nyse stocks I like to trade that I can see the size have my nx button ready lets say that I am wiling to pay though the bid by 3 cents. Within in a second I will see NYSE move the bid down and probably fill me at that three cent lower price. In other words I feel that lately they can move the nx bid and offer. Now I have learned to live with that and I have won some arguments but I would like more ammo.

Here is the question{s} Is there a link to the NYSE that has the rules or explains how NX works. And does anyone know if it has changed. I.E. do they now have more control of the matching process. I believe they do, and I know with a little info I could make them back down every time. This is not a gripe as much as I want to nail daytrading butts to the wall with facts.

thanks

Skip the link to the rules I just found them. I now wonder if anyone knows of a new wrinkle they are not talking about thanks
 
yeah i agree with you man....
what i really hate though is when you have an order out, lets say to sell your long at 22.50- well the specialist prints through your order at 22.65 and you don't get a fill- it usually happens when he spreads the stock- i will try to get out of my long when it is spread say 30 cents- i offer out 10 cents lower than the best offer, thinking that if he prints through me i will just get the fill and the price improvement of whatever he prints- then he prints through me by 10-15 cents and i dont get a damn fill at all- and i'm only trading 500 share lots- what the hell is that all about??
 
We have to remember, we are all adults fighting over money. The money comes out of my pocket and into yours, out of yours and into the specialists, then finally back in to mine (kidding).

Really, the specialists will always have an edge. Just when you figured it out, or think you did, you really didn't. The specialists will always be one up on the small traders.

Good Luck! If you ever figure out an edge let me know.
 
The big edge they have on NX is that any unfilled portion goes to the book, as opposed to being cancelled. Of course, once an order goes to the book, it is in <b>order purgatory</b>, and the specialist is the <b>minor deity</b>. He does with it as he pleases. If you try to cancel, and he wants you to, you'll cancel. If he doesn't, you'll be filled. Where will you be filled? Wherever he wants to fill you.

The specialist's bread and butter is the crowd. He must take care of them. Those are his main customers. So, if daytraders are loading up his book with unfilled pieces of NX orders, that's good for him. It gives him depth.

Though NX is touted as such a marvel of technology and that the NYSE is bending over backwards to make the playing field level for the average Joe, NX is effectively an order flow generator for the specialist. I suspect that this aspect of NX more than pays for any 'forced fills' the specialist makes. Sorta like SOES.
 
Chas,

How often do you really think residual limit orders arising out of partial NX fills create enough depth for a specialist to lean on? To me, scattered daytrader bids/offers don't mean squat when a specialist has to fill a block. Just my opinion.

Cool site!
 
Originally posted by frezza
Chas,

How often do you really think residual limit orders arising out of partial NX fills create enough depth for a specialist to lean on? To me, scattered daytrader bids/offers don't mean squat when a specialist has to fill a block. Just my opinion.

Cool site!
More...

yeah but the specialist is given the most priveleged info on wall street- the order flow- and beleive me, they definitely take advantage- wouldn't you??
 
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