3 ms·

Can I ask you how this is physically laid out? Is there just a big centralized computer at the exchange with two input queues, one for buys and one for sells? W

• yummyfajitas 16y ago
  It's basically what you think; a computer system keeps a queue of buy and sell orders, sorted by price/time (i.e., best price wins, if prices is equal, earliest order wins). It then matches trades by popping the top of the queue. If you place an order on INET which can be filled at a better price on ARCA, then INET routes your order to ARCA and you are charged a small routing fee. This is required by RegNMS. (There is a "don't route me" flag if you don't want to be routed. In that case, your order will simply go unfilled - exchanges can't match you at a price worse than the best price available on all exchanges.)
  • anonymousDan 16y ago
    But how are prices synchronized between exchanges (if at all)? i.e. say the best chance for my order being filled is at ARCA, but I submit it at INET. Does the fact that it will most likely get routed to ARCA via INET imply there is a greater chance of the order not filling than if the order had been submitted to ARCA directly?