JDTrader,
We wanted to elaborate on your comments made on 3/21/99 that we felt required clarity.
You wrote:
"Each one of those so called smart routing keys is designed so that they take about ten seconds to confirm your order, identify the best price, and send the order to a specific market maker or ECN. In the fast market, each of those market makers or ECNs generally only offer 100 shares and get hit by someone else before the so called smart keys get a chance to send out the order."
From your statement, it appears that you believe that it takes 10 seconds for a smart order to return with a confirmation after identifying the best price and sending the order to the specific market maker or ECN. In fact our Smart Order Routing consists of taking a snapshot of the Level2 portion of the screen and instantly forwarding a valid order in accordance to the configuration of your Smart Key Settings. Thus your confirmation of the pending order should typically occur within less than 2 seconds. Perhaps what you are making reference to is our CyBerSmart execution. After placing a CyBerSmart Market order, if after ten seconds you have not been filled for any portion of the total number of shares you requested, your order will be cancelled and replaced. Upon replacement, the Level2 information is reevaluated for any possible changes that may have occurred in the previous ten seconds. Also note that if and when the CyBerSmart Market order uses a SelectNet Preference order to execute from one of the ECN's and/or Market Maker's, because it is a SelectNet Order, you must wait ten seconds before you can cancel the order.
You also stated:
"Here is the catch about cybertrader. They have added an unnecessary and useless feature to their software that does not allow you as a seller to post an ask price lower than the inside bid in the island book, or as a buyer to post a higher price than the inside ask price in the island book. This, in turn, forces you to try to match the inside price each time and re-enter your order when someone else got that buyer or seller you aimed for. The chances are that you never get filled because you are competing against other day traders who have a great advantage over you. Their software allows them to choose how deep in the book they want to go and will fill them from the top of the book, going down the list until it reaches the price that they put in. This allows them to have a far better chance of getting filled, while still getting the best possible price(s) available."
To clarify, it's important to note that any order that will post resulting in a crossed or locked market, will be rejected. However this does not limit you to place orders only capable of matching the inside. You can indeed choose a level higher than the inside ask or lower than the inside bid. If there are any available shares on the island book to match with your order, price improvement will automatically match your order starting with the best price available and going up to the price you have indicated. We are currently working on incorporating the option of placing “Subscriber Only Orders”, which will enable the trader to actually cross or lock the current inside market.
Sincerely,
CyBerCenter Trader Support
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