4 ms·

i'm clearly talking to a real expert here. sure, i'll pretend it's 1996 again, and I haven't spend the last 19 years making a living trading equities. 1. sen

i'm clearly talking to a real expert here. sure, i'll pretend it's 1996 again, and I haven't spend the last 19 years making a living trading equities. 1. send limit order 2. broker sells said order to timberhill (ib) 3. timberhill places limit order on exchange -- let's call it the nonsense exchange since that's exactly what it is. 4. timberhill bids the same price or say 1/100th ahead of my order (leans on me) on real exchanges. 5. timerbhill takes the next trade at my price while leaving me unfilled (my order still hasn't executed even though it should have). 6. timberhill offers the shares i should have bought at price inside the current best offer. it's funny; i checked your blog posts about hft, and your solutions are the opposite of what's required to end the bullshit. the market would be much better served as a real marketplace if it enforced the penny increment rule (brokers currently sub penny the fuck out of every order on the market in the name of phony "price improvement"), and it consolidated venues (most trading venues today are holding places for customer order flow to be ripped off in the manner i've already explained).

yummyfajitas 10y ago
That's not how internalizers work. The right sequence is the following: 1. Send limit order to broker. 2a. If timberhill's resting order is at or better than the NBBO, your brokerage informs him that he just got a fill. 2b. If timberhill is worse than the NBBO, the order is routed to the public market and timberhill doesn't hear about it until INET/ARCA/whoever puts it (anonymized) in the quote stream.
- lintiness 10y ago
  you're confused. timberhill PAID ib for the order. they're not quoting anything unless it's relative to their receipt of said order.
  - yummyfajitas 10y ago
    Timberhill paid IB for the right to place orders on their internalization dark pool. Once in the darkpool they placed a resting order in that darkpool. I posted a link to IB documents elsewhere - I suggest you read them.

yummyfajitas 10y ago

That's not how internalizers work. The right sequence is the following: 1. Send limit order to broker. 2a. If timberhill's resting order is at or better than the NBBO, your brokerage informs him that he just got a fill. 2b. If timberhill is worse than the NBBO, the order is routed to the public market and timberhill doesn't hear about it until INET/ARCA/whoever puts it (anonymized) in the quote stream.

lintiness 10y ago
you're confused. timberhill PAID ib for the order. they're not quoting anything unless it's relative to their receipt of said order.
- yummyfajitas 10y ago
  Timberhill paid IB for the right to place orders on their internalization dark pool. Once in the darkpool they placed a resting order in that darkpool. I posted a link to IB documents elsewhere - I suggest you read them.