3 ms·
> A trade executed at NBBO and filled at a better price in a dark pool is perfectly legal and somewhat commonplace. This is what Citadel et al do. Client order
by kippster 6y ago
> A trade executed at NBBO and filled at a better price in a dark pool is perfectly legal and somewhat commonplace. This is what Citadel et al do.
Client orders are protected in this scenario by FINRA Rule 5320 - they can't trade ahead of client orders.
https://www.finra.org/rules-guidance/rulebooks/finra-rules/5320 https://www.finra.org/rules-guidance/rulebooks/finra-rules/5...
- JumpCrisscross 6y ago> Client orders are protected in this scenario by FINRA Rule 5320 That’s front running. It is illegal. Market making is done at risk. Citadel fills the client’s order at the NBBO out of its own book. It then turns around and sells stock at the best price it can find, which it hopes will be better than NBBO. (It may not!) This is market making and it’s quite legal.