Here is the conversation i had with big bake about
Post# of 16816
Posted On: 11/12/2012 6:14:44 PM
Here is the conversation i had with big bake about the tier system. Does nothing for otc stocks and what i thought.
vulken17 Monday, November 12, 2012 4:35:39 PM
Re: BigBake1 post# 1014 Post # of 1020
Hey Hoping you can answer my question. Off topic from the board however Because of the new tier system implemented today from finra I thought the min. trade (quote) size on a .0001 stock to .0999 will have to be 10000. So then how can a 5000 share and 9904 share trade go thru as i saw today on BCAP. Just an example but saw other trades on other stocks below 10000. any thoughts
BigBake1 Monday, November 12, 2012 5:35:08 PM
Re: vulken17 post# 1015 Post # of 1020
Quotation size is not minimum trade block size, the minimum trade block size is still 100 shares to be executed. Quotation size is the minimum size an MM must quote, although 10,000 shares is the minimal size quotation, that does not stop people from buying only 5000 shares and that trade executing and being reported to the consolidated tape.
vulken17
Monday, November 12, 2012 5:41:00 PM
Re: BigBake1 post# 1016
Post # of 1020
Got It. Thanks. Heres a thought. wouldn't it make sense to have a min. trade size as well to cut out all of the fake 911 trades, end of day paint jobs, and or market maker signals which ultimately are used to manipulate a stock. I thought that is why the tier system changed. what benefit does the tier change create.
I agree, once you are talking sub penny there should be nothing less than $100 trades. In fact Apex Clearing has stopped all trades below .01 and those above .01 require a minimum of $100.
It makes no sense watching 100 shares trade on a triple 0 security.
The changes were not really for the OTC but the exchanges to give a better view of available liquidity, although with Dark Pools it is almost impossible to get an accurate picture. By finessing the minimum diplayed quotation you get a finer resolution, but I am not sure what use that is with Dark Pools in play.
Here is the SEC discussion as to why they changed, it is good reading:
vulken17 Monday, November 12, 2012 4:35:39 PM
Re: BigBake1 post# 1014 Post # of 1020
Hey Hoping you can answer my question. Off topic from the board however Because of the new tier system implemented today from finra I thought the min. trade (quote) size on a .0001 stock to .0999 will have to be 10000. So then how can a 5000 share and 9904 share trade go thru as i saw today on BCAP. Just an example but saw other trades on other stocks below 10000. any thoughts
BigBake1 Monday, November 12, 2012 5:35:08 PM
Re: vulken17 post# 1015 Post # of 1020
Quotation size is not minimum trade block size, the minimum trade block size is still 100 shares to be executed. Quotation size is the minimum size an MM must quote, although 10,000 shares is the minimal size quotation, that does not stop people from buying only 5000 shares and that trade executing and being reported to the consolidated tape.
vulken17
Monday, November 12, 2012 5:41:00 PM
Re: BigBake1 post# 1016
Post # of 1020
Got It. Thanks. Heres a thought. wouldn't it make sense to have a min. trade size as well to cut out all of the fake 911 trades, end of day paint jobs, and or market maker signals which ultimately are used to manipulate a stock. I thought that is why the tier system changed. what benefit does the tier change create.
I agree, once you are talking sub penny there should be nothing less than $100 trades. In fact Apex Clearing has stopped all trades below .01 and those above .01 require a minimum of $100.
It makes no sense watching 100 shares trade on a triple 0 security.
The changes were not really for the OTC but the exchanges to give a better view of available liquidity, although with Dark Pools it is almost impossible to get an accurate picture. By finessing the minimum diplayed quotation you get a finer resolution, but I am not sure what use that is with Dark Pools in play.
Here is the SEC discussion as to why they changed, it is good reading:
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