Steve, I have some questions about order routing that maybe you can answer.
I'm considering accounts at two firms, Web Street and MB Trading. MB obviously has a great product, with reasonable commissions, and not much "nickel and diming" when it comes to order routing. RealTick looks awesome, and I can't wait to get L2.
Web Street, as I understand it, only routes orders to their MM, Nash Weiss (NAWE). At first, I thought this would be a severe limitation. But this may in fact work to my advantage at certain times when I want to buy at the bid or sell at the ask.
If NAWE is not currently at the bid, and I place a limit order to buy at the bid, isn't NAWE required (by NASDAQ rules) to represent my order at this bid? And since they are a MM and not an ECN, this would be an SOES'able order.
Of course if NAWE is unscrupulous they could move to the bid as a result of my order, buy shares at the bid, then turn around and SelectNet them out to another MM at the ASK. Would this be more of what I should expect?
Any comment are appreciated.
Gary |
