An ECN could absolutely direct order flow to NITE? Absolutely Yes,if NITE were the current best source of liquidity. E.g., Archipelago (owned by Goldman, Etrade, CNBC, TerraNova, et al) has an intelligent order router that seeks the best bid/offer from all available sources of liquidity that it can access, includin market makers, exchanges, its own book (#1!), etc.
Paul, great post. But I have a question about the above statement.
Isn't ARCA really unique in this regard, coupling order routing with ECN display, and only for one unique type of order? Wouldn't this only apply to a limit order placed at the current bid/ask, for which there is no immediate ARCA ECN match? And how would this be different than a Selectnet broadcast?
For a typical ARCA order, say between the spread, the order is displayed as best bid/ask on Level 2 for someone to hit, just like all other ECNs.
Gary |
