Actually, I think they blew it with their explanation to you. In my attempt at brevity, I glossed over some details. Here is how I understand it to be, both by communications with Datek people, and knowledgeable sources close to the action:
Market orders first look for a match at Island (at the inside mkt), and if no match, go out Selectnet broadcast.
Limit orders, if at the inside mkt, go to Island, look for a match, and if none, go Selectnet preference to a MM at the inside mkt, where the 30 second (or is it 17 seconds) rule lets them decide, and if they don't accept it, it goes back to Datek, where the process begins again.
Limit orders outside the inside mkt go on to the Island book to wait for a match.
I have since been informed that Datek has, in the past, relied heavily on SOES for marketable orders. So, I guess you can insert "and/or Soes" where I mention Selectnet above.
I hope someone really in the know can let us know where the truth lies. Suffice it to say, as I always have, that to enter market orders with Datek is to hang a sign around your neck, saying "Please Screw Me." There are times you have to bite the bullet and go with a market order, but I try not to be in a position when I absolutely HAVE to bail out of a trade. It is hard to do sometimes, but it is a strategy that works for me.
I have also been having, for the most part, great fills for the past few months, even though I see a lot of complaints from others that haven't been as lucky. I also never trade Datek until at least 9:50AM or so.
Len
OT... I'll call you tomorrow... may be out of town next week. |
