Re:Guy trading at home caused the flash crash of 2010
by justonepost on Wednesday April 22, 2015 @02:02PM
(#9422260)
I'm not being pedantic at all. It's the whole point of the order type and Market Making. Being a provider of liquidity as last resort. This order type is only available for MMs, btw.
Ideally, the order will never execute as the regular market will handle the volume. Things are in bad shape when you have to dig into the Market Maker's pockets.
order type description: https://www.nasdaqtrader.com/content/productsservices/tradin...
Re:Guy trading at home caused the flash crash of 2010
by cma on Wednesday April 22, 2015 @02:39PM
(#9422573)
Ok, you are saying market makers are there to handle single whale orders, and not floods of one-sided orders during rumor panics etc. And you are saying that market makers should be obligated to take on a single whale order, but if the same whale-order-placer instead splits his whale it into chunks and simultaneously places them, maybe to hit multiple exchanges at once, the market maker obligation goes away as long as the first chunk is small enough not to blow away the book.
Yep, the order type is only for market-makers. That's pedantic too; I only ever talked about it in the context of market-makers, as an example of place-cancel not being the same as spoofing. I'm not sure if you are pointing this out to say I am conflating them. Maybe I should have picked a more noble non-spoofing example?
Maybe you aren't being pedantic: are arguing the intent of the regulation was to have market-makers make markets only as a bulwark against single whale-orders that will probably be thrown out as clearly erroneous?
That is a real role-redefinition. A quoting obligation that falls apart if the big-order trader on the other side randomly decided to break his order two (or N) near-simultaneous orders?