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Neuer Orderart: Route Peg ("Anti-HFT")


whipsaw

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Direct Edge führt neue Anti-High Frequency Trading Orderart ein

 

Traders Magazine Online News
Exchange operator Direct Edge will introduce a new order type aimed at customers that want to avoid interacting with professional traders.

 

 

Called “Route Peg,” the order type was approved last week by the Securities and Exchange Commission. It will be available on both of Direct Edge’s exchanges at an as-yet undisclosed date.

 

Route Peg is a hidden limit order priced at the market’s best bid or offer. It only executes against orders that are being routed out from EDGA or EDGX to another exchange.

 

Those orders, according to Direct Edge’s regulatory filing, are unlikely to belong to professional, or high-frequency, traders. Typically, professional traders submit orders that fill immediately or are canceled. They don't route out. The Route Peg has been crafted to interact with orders that enter one of Direct Edge’s exchanges, fail to execute and then are routed away. Just before it leaves Direct Edge, the order may match up with a Route Peg order.

 

http://www.tradersmagazine.com/news/HFT-110239-1.html

 

RoutePeg.pdf

 

SEC.34-67290.pdf

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