ARCA has a built in smart routing logic. So, if you send a marketable order to ARCA, it will "shop" the available prices to get you a better fill. That means your order can get sent pretty much anywhere, like NYSE. It's in this case, the specialist gets control and can hold your order while his book is frozen.
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SpecialistMan - by John Bogle
- Thread starter Tea
- Start date
ARCA has a built in smart routing logic. So, if you send a marketable order to ARCA, it will "shop" the available prices to get you a better fill. That means your order can get sent pretty much anywhere, like NYSE. It's in this case, the specialist gets control and can hold your order while his book is frozen.
Quote from DaveN:
ARCA has a built in smart routing logic. So, if you send a marketable order to ARCA, it will "shop" the available prices to get you a better fill. That means your order can get sent pretty much anywhere, like NYSE. It's in this case, the specialist gets control and can hold your order while his book is frozen.
Plus it gets routed over ITS which is extremely slow
Quote from DaveN:
ARCA has a built in smart routing logic. So, if you send a marketable order to ARCA, it will "shop" the available prices to get you a better fill. That means your order can get sent pretty much anywhere, like NYSE. It's in this case, the specialist gets control and can hold your order while his book is frozen.
thanks for the info Dave...i knew the order could be held but i didn't know why.
You never know......
http://www.heraldsun.news.com.au/common/story_page/0,5478,7359384%5E462,00.html
http://www.heraldsun.news.com.au/common/story_page/0,5478,7359384%5E462,00.html
"The NYSE has steadfastly maintained its own version of open outcry trading, with 1366 members engaged in face-to-face share dealing every day. Such floor trading was abandoned in Australia in October 1990."
"Mr LaBranche added that Dick Grasso, the ousted chief executive of the exchange, was opposed to increasing electronic trading."
so we are only 13 years behind australia....i'm sure Elmer Fudd had his reasons.....140 million reasons.... i hear that he can collect another 50 something million if he can prove he was forced to resign. this is on top of the 48 million that he supposedly turned down.
"Mr LaBranche added that Dick Grasso, the ousted chief executive of the exchange, was opposed to increasing electronic trading."
so we are only 13 years behind australia....i'm sure Elmer Fudd had his reasons.....140 million reasons.... i hear that he can collect another 50 something million if he can prove he was forced to resign. this is on top of the 48 million that he supposedly turned down.
If there was ever a time to have changes made at the NYSE - now is the time. The protection for the specialists, Dick Grasso, has been eliminated. The NYSE board, which is made up of prominent people who thought they were taking a prestigious position, have been made fools of and have had their reputations damaged. They are ripe for revenge on the NYSE system and there is nothing the members can do.
SEC chief, Donaldson, who is an apologist for the archaic open outcry system has been embarrassed and seems open to suggestion. Even Larry Kudlow of the CNBC Kudlow & Cramer show is starting to seem embarrassed. He is against protectionist measures like the steel tariffs for blue collar workers. But he is all for protectionist measures that protect the unwanted NYSE open outcry system that enriches his friends who are specialists. A bit hypocritical is you ask me.
The specialists are slowly twisting in the wind. Now is the time to strike while the iron is hot. An individual investor can write a letter to his/her congressman and copy the SEC.
Hedge funds can hire a lobbyist and get to work. Larger firms should already have lobbyists and should get to work eliminating this open outcry travesty and getting listed stock trading in the modern age like Nasdaq.
SEC chief, Donaldson, who is an apologist for the archaic open outcry system has been embarrassed and seems open to suggestion. Even Larry Kudlow of the CNBC Kudlow & Cramer show is starting to seem embarrassed. He is against protectionist measures like the steel tariffs for blue collar workers. But he is all for protectionist measures that protect the unwanted NYSE open outcry system that enriches his friends who are specialists. A bit hypocritical is you ask me.
The specialists are slowly twisting in the wind. Now is the time to strike while the iron is hot. An individual investor can write a letter to his/her congressman and copy the SEC.
Hedge funds can hire a lobbyist and get to work. Larger firms should already have lobbyists and should get to work eliminating this open outcry travesty and getting listed stock trading in the modern age like Nasdaq.
Quote from bungrider:
no no no no no no no no no no
allowing the specialist to control the ECNs in ANY WAY would be a step backwards for the entire market
the better rule would be to force EVERYONE (even prop firms that cannot or do not trade listed stocks across ECNs) to provide ECN quotes along with the NYSE market -- and to force retail brokers to execute at that inside price despite the possibility of price improvement by sending the order to the floor
it's like andreson's old argument -- would you rather wait 30, 45, even 60sec for a print in a fast market MAYBE at a better price -- when you could get stock in 0.100sec and trade AT the posted market with a limit order???
i think part of the reason the specialist problem still exists is because most firms that trade listed do not route anywhere else...for several BS political reasons...but the carrot being dangled in front of everyone's eyes as "price improvement" is meaningless to most investors. plus how many times do you sit there waiting for the print and it happens at a lousier price than if you had been able to autoex the offer or the prick pennies you and rips the stock away from your price??
i see ISLD bids or offers superior to the NYSE market -- and they are also TRULY autoexecuteable -- all the time and they are rarely hit.
i have seen other traders pick me off for 5 cents or more on many occasions when priceimprovement on the nyse leaves me hanging at the high bid on the regionals ( etrade doesnt route to the nyse except when ur giving up the spread)
I trade thin liquidity NYSE issues, and the price improvement "algorithm" is running rampant these days. More than I have ever seen, and more than what the NYSE website claims (on the order of 40 % or so).
This so-called "price improvement" that NYSE allows for, provides
for penny (or more) improvements for those who are already willing to pay the "market" price for a stock, and causes "price
disimprovement" for those that are posting limit orders, and are
jumped in front of. This clearly disrupts the laws of supply and
demand in the marketplace, and diminishes the usefulness of
placing limit orders into the system. This results in diminished
confidence in the marketplace by those placing limit orders, which
will inevitably result in fewer limit order being placed. This will
ultimately (and has already) diminished the liquidity in the marketplace, IMO. Why does someone who wants to buy at the market in the first place get a price improvement, while those who want to buy a t a limit price, continuously get price disimproved, via unfilled orders ? I just don't get this one........another "feature" of a totally antiquated market (NYSE).
I truly believe that "price improvement" was devised by Grasso and company, in an attempt to rid the marketplace of Day Traders. What he is forgetting is that Day Traders contribute positively to liquidity, and Specialists are Day Traders, whose # 1 goal is to make money first; regulate the market 2nd (Grasso himself today said that his job of market regulation is only 1/3 of his job......). Enough said !
This so-called "price improvement" that NYSE allows for, provides
for penny (or more) improvements for those who are already willing to pay the "market" price for a stock, and causes "price
disimprovement" for those that are posting limit orders, and are
jumped in front of. This clearly disrupts the laws of supply and
demand in the marketplace, and diminishes the usefulness of
placing limit orders into the system. This results in diminished
confidence in the marketplace by those placing limit orders, which
will inevitably result in fewer limit order being placed. This will
ultimately (and has already) diminished the liquidity in the marketplace, IMO. Why does someone who wants to buy at the market in the first place get a price improvement, while those who want to buy a t a limit price, continuously get price disimproved, via unfilled orders ? I just don't get this one........another "feature" of a totally antiquated market (NYSE).
I truly believe that "price improvement" was devised by Grasso and company, in an attempt to rid the marketplace of Day Traders. What he is forgetting is that Day Traders contribute positively to liquidity, and Specialists are Day Traders, whose # 1 goal is to make money first; regulate the market 2nd (Grasso himself today said that his job of market regulation is only 1/3 of his job......). Enough said !
Quote from Tea:
........ Even Larry Kudlow of the CNBC Kudlow & Cramer show is starting to seem embarrassed. He is against protectionist measures like the steel tariffs for blue collar workers. But he is all for protectionist measures that protect the unwanted NYSE open outcry system that enriches his friends who are specialists. A bit hypocritical is you ask me..........
i don't think there is anyone on cnbc that is as arrogant as kudlow and cramer. kudlow loves to run his mouth on fed days and it's a miracle if you can get him to shut up long enough to hear the rate cut announcement.