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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
by 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 agoyou'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 agoTimberhill 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.