Are they actually able to hit the AMEX quote for their nasdaq trades? The crosses occur because most people can't hit the AMEX because it is not automated. The specialist and his molasses hands can't keep up with the pace of nasdaq where everyone is used to fast fills. Kind of weird combination at this point. I understand that the AMEX thought there was a market for large size institutional orders on nasdaq where getting big prints all at one price can be difficult. However it has not been implemented that well to flow with the nasdaq market structure. If you are at a firm that does have instant execution against the AMEX quote then you could probably trade all day getting easy arbitrage trades because the ECNs are crossing his quote up all day long.
Will Amex trading OTC be good?
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Are they actually able to hit the AMEX quote for their nasdaq trades? The crosses occur because most people can't hit the AMEX because it is not automated. The specialist and his molasses hands can't keep up with the pace of nasdaq where everyone is used to fast fills. Kind of weird combination at this point. I understand that the AMEX thought there was a market for large size institutional orders on nasdaq where getting big prints all at one price can be difficult. However it has not been implemented that well to flow with the nasdaq market structure. If you are at a firm that does have instant execution against the AMEX quote then you could probably trade all day getting easy arbitrage trades because the ECNs are crossing his quote up all day long.
Look closer. The Amex specialists are not locking and crossing the markets. They are getting locked and crossed by ECNs and market makers who are just ignoring the Amex. When they are in a locked or crossed situation, they are there passively.
If a trader cannot hit the Amex quote, it is probably because they haven't yet figured out how to do so. You need a DOT link to the Amex. BRASS is going to be able to provide this very soon. A few others can do so already, e.g., ABN AMRO's ISI system.
It does take up to 10 seconds to get an execution against the Amex quote, but in many of these stocks you can get your executions done for 10,000 shares, which is faster then it often takes to get 10,000 shares done elsewhere. And the price I go to hit for 10,000 shares I get all 10,000 executed.
If a trader cannot hit the Amex quote, it is probably because they haven't yet figured out how to do so. You need a DOT link to the Amex. BRASS is going to be able to provide this very soon. A few others can do so already, e.g., ABN AMRO's ISI system.
It does take up to 10 seconds to get an execution against the Amex quote, but in many of these stocks you can get your executions done for 10,000 shares, which is faster then it often takes to get 10,000 shares done elsewhere. And the price I go to hit for 10,000 shares I get all 10,000 executed.
The AMEX also has a direct plus system that is similar to the NYSE NX. So you can hit the bids and offers instantly.
I trade DELL and AMEX has been making it very hard ever since he showed up a couple of weeks ago.
Today for instance, I watched him more than once offer at let's say 26.14 size 100. Everyone is hitting 26.14 and even 26.15 26.16 and over!!! and he doesn't move for 30 seconds or more!! same price! until the stock turns around and tanks the other way! He did the same thing on the Bid...
So I tried offering 2 cents above him and short DELL, but the couple of times I did.. he decides to move and the stock rips 10 cents!! He is extremely annoying as his size 100, or 200 would never change as people are hitting the level! So I don't know if he is getting filled or not... and how? because I can't seem to hit him using SuperSOES. At the end of the day he started showing lot size 69 !!! It's like he knows he is f$%*ing up the stock and he is telling us to go to hell!
Ever since he showed up, DELL doesn't move as much as it used to as Amex holds and holds it forever!! And it doesn't look like ANYONE can HIT his stupid large sizes!
Today for instance, I watched him more than once offer at let's say 26.14 size 100. Everyone is hitting 26.14 and even 26.15 26.16 and over!!! and he doesn't move for 30 seconds or more!! same price! until the stock turns around and tanks the other way! He did the same thing on the Bid...
So I tried offering 2 cents above him and short DELL, but the couple of times I did.. he decides to move and the stock rips 10 cents!! He is extremely annoying as his size 100, or 200 would never change as people are hitting the level! So I don't know if he is getting filled or not... and how? because I can't seem to hit him using SuperSOES. At the end of the day he started showing lot size 69 !!! It's like he knows he is f$%*ing up the stock and he is telling us to go to hell!
Ever since he showed up, DELL doesn't move as much as it used to as Amex holds and holds it forever!! And it doesn't look like ANYONE can HIT his stupid large sizes!
Once Supermontage starts - Nasdaq will trade thru the AMEX quotes if they are the best bid or offer --- the Amex will not hold up anything --
I also read on nasdaqtrader.com that pending approval - soon any UTP that wishes to quote nasdaq stocks in Supermontage will have to become an auto-fill participant(immediate execution) If this happens, you will see those AMEX boggus quotes of 100,000 quickly turn into quotes of 100 shares.
I am getting tired of these jokers -- more and more of my trading has been going in the direction of e-minis and spy's on island -- true electronic platforms - the fairest, most open and fastest exchanges in the world !!!!!
I also read on nasdaqtrader.com that pending approval - soon any UTP that wishes to quote nasdaq stocks in Supermontage will have to become an auto-fill participant(immediate execution) If this happens, you will see those AMEX boggus quotes of 100,000 quickly turn into quotes of 100 shares.
I am getting tired of these jokers -- more and more of my trading has been going in the direction of e-minis and spy's on island -- true electronic platforms - the fairest, most open and fastest exchanges in the world !!!!!
NASDAQ is going to become like the NYSE. One level of wuote cause the specialist is gonna control it!!! The specialist knows where the buyer is, and he will do anything to make you think the stock is going one way, when he's accumulating stock to take it the other way. It's great, you guys will love the game!!!
YOU NEED A DOT/PACE CONNECTION TO ACCESS THE AMEX IN THOSE OTC ISSUES I HAVE MENTIONED. Super soes will not work. Very simple. It's not that hard to comprehend.
Jeff--
www.tradeoes.com
Jeff--
www.tradeoes.com
Frustrating Yep. But let's clarify the facts:
* Nasdaq specifically refused to discuss intermarket linkage with the Amex when Amex notified them that it was entering the Nasdaq business. Ask the SEC.
* Nasdaq, by rule, prohibited Amex from participating in SelectNet.
* Nasdaq prohibited Amex from using ACT for clearing.
* The reason why the Amex price sits there for so long is that many firms and service vendors did not establish linkage to the Amex market. This despite months and months of Amex notices that it was entering the business. (This problem will largely go away soon after Brass finally links).
* Again, Amex will not be a participant in SuperMontage so the Amex size quotes will not disappear.
* Those of us who have figured out how to actually hit the Amex and trade with them are finding their liquidity substantial and their quotes real. The Amex has a firm quote rule and it is strictly enforced.
Check with your trading service and try it because you're never going to be able to hit the Amex via SuperSOES or SuperMongage
* Nasdaq specifically refused to discuss intermarket linkage with the Amex when Amex notified them that it was entering the Nasdaq business. Ask the SEC.
* Nasdaq, by rule, prohibited Amex from participating in SelectNet.
* Nasdaq prohibited Amex from using ACT for clearing.
* The reason why the Amex price sits there for so long is that many firms and service vendors did not establish linkage to the Amex market. This despite months and months of Amex notices that it was entering the business. (This problem will largely go away soon after Brass finally links).
* Again, Amex will not be a participant in SuperMontage so the Amex size quotes will not disappear.
* Those of us who have figured out how to actually hit the Amex and trade with them are finding their liquidity substantial and their quotes real. The Amex has a firm quote rule and it is strictly enforced.
Check with your trading service and try it because you're never going to be able to hit the Amex via SuperSOES or SuperMongage
http://www.amex.com/equities/nasdaqUTP/NqIssues.jsp
Here's a complete list of the OTC issues that the Amex trades.
Jeff--
OES
Here's a complete list of the OTC issues that the Amex trades.
Jeff--
OES