Will Amex trading OTC be good?
- Thread starter tradeoes
- Start date
A lot of this stuff is outlined on the Amextrader website and in Nasdaqtrader head trader alerts and vendors alerts.
Amex will not be in SuperMontage or SuperSOES for that matter.
Amex will not be in the ADF. This will primarily be for ECNs and OTC market makers posting quotes outside of SuperMontage.
Amex can be accessed by CMS - Common Message Switch. This is the same way most orders get to the floor of the NYSE. Their market is accessible as long as you have a connection.
Amex can also be accessed by floor brokers for large institutional orders. Market Makers can also call the specialists directly.
In a few stocks last week, Amex specialists were posting huge quotes and standing up to their markets (SPLS and ASML). In the others, it looked like they were computer generating quotes away from the inside markets.
Nasdaq SuperSOES will trade through the Amex quotes automatically missing the Amex markets when they are better. That is why the Amex quote sit there sometimes without being hit. Marketmakers are still figuring out how to hit these quotes.
REDIPlus is currently linked to Amex. ARCA has had some delays but expects to be linked soon. ABN AMROs ISI is and other systems also appear to be linked. People are still setting up linkage to the Amex because many didn't go to the trouble before because they didn't actually think Amex was really going to trade Nasdaq stocks or they thought the SEC would never approve it or something.
The linkage issue is key because the Amex says they will to trading Nasdaq stocks very soon.
Amex will not be in SuperMontage or SuperSOES for that matter.
Amex will not be in the ADF. This will primarily be for ECNs and OTC market makers posting quotes outside of SuperMontage.
Amex can be accessed by CMS - Common Message Switch. This is the same way most orders get to the floor of the NYSE. Their market is accessible as long as you have a connection.
Amex can also be accessed by floor brokers for large institutional orders. Market Makers can also call the specialists directly.
In a few stocks last week, Amex specialists were posting huge quotes and standing up to their markets (SPLS and ASML). In the others, it looked like they were computer generating quotes away from the inside markets.
Nasdaq SuperSOES will trade through the Amex quotes automatically missing the Amex markets when they are better. That is why the Amex quote sit there sometimes without being hit. Marketmakers are still figuring out how to hit these quotes.
REDIPlus is currently linked to Amex. ARCA has had some delays but expects to be linked soon. ABN AMROs ISI is and other systems also appear to be linked. People are still setting up linkage to the Amex because many didn't go to the trouble before because they didn't actually think Amex was really going to trade Nasdaq stocks or they thought the SEC would never approve it or something.
The linkage issue is key because the Amex says they will to trading Nasdaq stocks very soon.
Can MM's and ECN's that participate in Supermontage also place quotes in the ADF?
I was told that AMEX was signed up with ADF??
Keep in mind that ADF is not an execution platform like SuperMontage. It simply allows quotes and trade reporting.
To execute with a ADF participant you must have direct access to them or access to a broker who does.
I believe anyone can be in ADF who signs up. There is no limit that prohibits one from being on both SuperMontage and ADF.
Many places have done testing for both.
Keep in mind that ADF is not an execution platform like SuperMontage. It simply allows quotes and trade reporting.
To execute with a ADF participant you must have direct access to them or access to a broker who does.
I believe anyone can be in ADF who signs up. There is no limit that prohibits one from being on both SuperMontage and ADF.
Many places have done testing for both.
I personally love the amex. Those guys are honest and fair. I have gotten more stop time orders on amex stocks than on the NYSE, and I only do about 5% of the volume that I do on the nyse. I almost always get price improvements on the amex too.
"After the close of trading Friday, August 23rd, the Securities and Exchange
Commission issued an Order denying Knight Trading Group's "Petition for
Review" of the Amex's rules for its Nasdaq trading program. The SEC Order*
lifted the 'Stay' of the Amex's trading rules, which was an automatic result
of the Knight Petition. Given this development, the Amex will resume trading
Tuesday, August 27th in the 9 Nasdaq securities that were traded during the
week of August 12th."
Jeff--
OES
Commission issued an Order denying Knight Trading Group's "Petition for
Review" of the Amex's rules for its Nasdaq trading program. The SEC Order*
lifted the 'Stay' of the Amex's trading rules, which was an automatic result
of the Knight Petition. Given this development, the Amex will resume trading
Tuesday, August 27th in the 9 Nasdaq securities that were traded during the
week of August 12th."
Jeff--
OES