Hey Dan,
"I hope you are not saying an MM who receives my limit order can throw it in a pile of "I'll get to that when I feel like it", or choose to reject any such order after an extended delay."
Not at all. If I accept a limit order, I have 30 seconds* to execute it, send it to an ECN/ATS under the 17a-23 Alternative, or update my quote/add it to my quote (as we have discussed).
In your other example, you're right. The market maker does not have to - and likely wouldn't - reflect an inferior quote to that which he's showing. I had hoped to make that clear by specifying that only limit orders which improve the MM's quote (or, those at the same price which are more than 10% of his displayed size) need be displayed.
LPS5
*Remember this is thirty seconds to decide, upon acceptance, what to do with a limit order. Tossing it aside at that point is not an option. Once accepted, if a customer's order, it has to be given Manning protection. Don't confuse this with the one minute rule I mentioned in my last message, related to trading ahead in a proprietary or inventory account - |
