Order Entry Tip Sheet

 

**Please note that all orders entered through any of the exchanges are only orders until they are confirmed executed/cancelled orders by the exchange. Placing an order on any of the exchanges does not always guarantee an execution.**

 

 

NASDAQ/SUPERSOES     9:30 AM EST-4:00 PM EST

• Can place market, limit, and marketable limit orders.

• Can only trade with market makers, not ECN’s.

• Can place limit orders at bid or ask, cannot go in between the spread.

• When buying, can place limit 10% above ask price and 10% below bid price when selling (marketable limit order).

• Maximum tier limit is 999,999 shares per order.

• Cannot buy same issue twice within 5 minutes or sell short same issue twice within 5 minutes.  This is known as the 5 minute rule implemented by SOES.

• 90 second holding period when ECN is alone at best bid or offer.

 

 

 

SELECTNET       8:00 AM EST-6:30 PM EST

Broadcast:

• Display bid or offer to MM’s only. Does not execute against ECN bids or offers.

• Market orders not accepted. Can place limit orders at bid, in between the spread or away from the market.

• MM’s are not obligated to fill your order even if they are posted at your price.

• Orders will time out if market moves away, partials will stay live.

• Will not cancel order for 10 seconds

Preference: ( sending an order to a particular MM or ECN )

• Market orders not accepted.

• 1.5 cents/share when directing an order to an ECN (Exception – BTRD > .5 cent/share)

• Used to trade against an ECN bid or ask price, as well as a market maker bid or ask price.

• To preference an order simply check the Selectnet Preference box in the orderbook and double-click on the MM or ECN that you wish to preference. You will see the market maker id appear in the “Selectnet Pref” box after you have double clicked.

• Cannot cancel order for 10 seconds

• MM’s have 1 minute to fill you on what they are displaying or back away.

• You can specify all or none (AON) for ALL Selectnet orders.

• 3 minutes until expiration

• Selectnet orders do not post, therefore you will not see yourself being represented on level 2.

 

 

INET      7:00 AM EST-8:00 PM EST

• Instinet button allows you to route your order to the Instinet order book (will only trade against other INET orders). Will not be able to execute against market makers or ECN’s.

• Can post order or trade against an existing Instinet bid or offer.

• To hit an existing bid or offer simply enter the symbol and price that is displayed on Instinet and click on the Instinet button.

• Market orders not accepted.

• Market Maker window will only post best Instinet bid or offer. Will not display entire Instinet book during market hours.

 

 

 

AUTO (Listed)    9:30 AM EST-4:00 PM EST

• Order entry system for all Listed issues.
  - Rule of Thumb: Symbols with 3 characters or less are Listed securities.

• Orders are routed through the SUPERDOT, which sends the order to the NYSE and the other regional exchanges  electronically.

• Must place increment in 1/16 or higher.

• Max volume is 9999 shares.

• Market, limit and stop orders are all accepted.

 

 

 

AUTO (Options)   9:30 AM EST-4:02 PM EST for equity options and 4:15 for index options

• Order entry system for all options orders.

• Options do not trade in 1/16 above $3 or 1/32 under $3 orders. Any orders placed at these prices will go live but will be dead orders at the exchange so please be careful.

  

 

 

ARCA    8:00 AM EST-8:00 PM EST (NASDAQ)

                  9:30 AM ET – 5:00 PM ET (LISTED)

• Can place market or limit orders in Round lots or Odd.

• Can post using same guidelines as you would using Instinet meaning you can also lock or cross-market.

• You can also preference on ARCA, but unlike Selectnet you are attempting to preference a specific price as opposed to a MM or ECN.

• ARCA will scan it’s internal order book and if your price is not available it will then scan all MM’s and ECN’s until your order is filled/killed. If the market moves away from your price, your order may be killed as well.

• There is an additional 0.005 cent per share charge on all ARCA and AUTO OTC Day orders.

• NO market orders from 4:00 PM ET – 9:30 AM ET.

*    ECN- Electronic Communication Network

( INET, INCA, ARCA, BTRD, STRK, REDI, BRUT, ATTN, NTRD )

 

*   MM- market maker           

 

*   POST- Display your bid or offer in the level-2 section of the market maker window.