Nasdaq Change to Limit Orders ?

Trader333

Moderator
8,655 981
I notice that today I am unable to place limit orders to 3 decimal places (which is something I do a lot of). For example if a stock is trading at Bid = $26.50 and Ask = $26.51
then I may want to place a limit order to go Long at $26.501 which never used to be a problem but it appears I am not able to do this any more.

Does anyone have any information on this ?


Paul
 

Trader333

Moderator
8,655 981
Apparantly there is a new Island tick rule. Island no longer supports trades under or above a round penny for stocks valued over $1 and was implemented by Island on February 27th but is now in force by most brokers.

This is not good news for the purposes of getting into the market at the best point and most definitely takes away an edge that could be used by the more astute traders. Over time this could add significant costs to trading Nasdaq stocks in my view.

Time for a strategy review I think.


Paul
 

rog1111

Established member
673 10
I guess they're trying to stop all the "chippies" leapfrogging ahead of the big boys ! Nice hey, they just change the rules when it suits !

rog1111
 

a320

Established member
689 8
I think you can still shave on Brut :?:

But don't quote me as they say ...Not really my domain anymore :cheesy:

CJ
 

TheBramble

Legendary member
8,394 1,170
It does say they wil be monitoring the situation, but given they have already carried out their pilot (last year) and found it beneficial (!) I imagine it's unlikely it will be reviewed in the short term.

As they're auto rounding down sub-penny bids and rounding up sub-penny asks there shouldn't be any unexpected exposure from automated trading systems already in place. However, as Paul says, it may be a good time to rethink strategies.
 

TheBramble

Legendary member
8,394 1,170
Dumb Question???

If it's only ISLD (Inet) that have adopted this rule, is there anything to stop you selecting (preferencing?) another ECN/MM or have they all adopted this rule?
 

rog1111

Established member
673 10
Thanks for the link a320. The SEC refer to orders that are "not transparent" to market participants, but whose side are they on ? We find a bit of an edge, and they close it down, and then come up with all these marvellous reasons why. Who is pulling who's strings here ? Need I ask.....nice ! :devilish: Bitter, me ?!

rog1111
 

a320

Established member
689 8
Hmm..No shaving & no bullets... :confused:

Does take the edge of things... know doubt more will move onto the furtures markets :?:

CJ
 

TheBramble

Legendary member
8,394 1,170
Futures and FX not impacted then?

Trying very hard to specialise in dumb questions today so how about...

Is there a LII equivalent (or is it the same LII) for FX and Futures?
 

rog1111

Established member
673 10
a320 said:
Hmm..No shaving & no bullets... :confused:

Does take the edge of things... know doubt more will move onto the furtures markets :?:

CJ

The spreads in SSFs are higher, so it might be the way to go. I'm not sure about the liquidity of these things, but they track the stocks very closely.
 

BBB

Experienced member
1,071 3
Bramble - people just use the order book in e-futures markets. Same concept, just that there is only one destination for execution - the host (exchange).

I used to think this was a great benefit of NASDAQ - multiple destinations ment greater competition between destinations for your order and fee they would receive.

When the SEC introduced the 25k day trading rule, all the minnows moved off to trade ES - which is why that market is such a mess imo. Too many kids trying to grab a tick or a point as they cant trade trends. This has caused the Futures traders to move out and attack the FX - the last bastion of truly free markets. Meanwhile, I've noticed NASADQ stocks getting less choppy each day, as better trends develop as the scalpers move out to ES. The cycle has almost complete itself!

I thought perhaps this was the motivation for this new rule - not that I agree with it.

I am against (most) regulation in the markets. Trading is the last real frontier of capitalism, and the free spirit. Thats why regulation sucks - even if it does sometimes create a more orderly market.

Thats my rant for the day - I'm going back to bed. Wake me up when the SEC know their ar$e from a hole in the ground.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock