Hello JD,
I wanted to address some comments made by you which do not accurately represent the capabilities of the CyBerTrader platform.
You wrote:
"The Island book look like this
Bid **** Ask
$120 300 **** $122 600
$118 500 **** $123 1000
117 1/4 600 **** $124 5000
This is what all programs allow you to do. You enter an Island order to sell 1000 shares at 117 for example. The Island book will start at the top of the book and fill you as following: 300 at 120, 500 at 118 and 200 at 117 1/4. You are OUT of your position. Cybertrader, however, will reject your order and says that you were locking the island book because your selling price is lower than the inside bid."
This is incorrect. CyBerTrader will NOT reject your order as you have stated. In fact it would attempt to execute your order as you suggested all other programs would. Thus in the example you have illustrated, while using CyBerTrader, your order could have filled 300 shares at $120, 500 shares at $118, and a remaining 200 shares at $117 ¼ (provided no one got the shares in question before you), to give you a total of 1000 shares.
Once again, it is important to note that any order that would POST (meaning: be displayed in the Level II screen) resulting in a crossed or locked inside market, will be rejected. However this does not limit you from placing orders capable of matching the inside only. 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/down 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 post (within the Island book only, and not for display to the wider market) a cross or lock of the current inside market. This, however, is absolutely no guarantee of receiving any execution.
Please feel free to contact us if you have any questions or need additional clarification on any details.
Sincerely,
Mark K. Stryker
CEO
CyBerBroker, Inc. |
