Routing trades to broker
Discussion
I've bought and sold shares occasionally for a decade - buy on the bad news, sell later. Unfortunately most of the bad news is accompanied by a flurry of market activity and sometimes (more regularly recently) I can't execute a live trade so have to set a limit and pass onto a broker (III suggests this).
Is there any way I can execute trades in volatile markets? Are other brokers better or do I need a different type of account?
Is there any way I can execute trades in volatile markets? Are other brokers better or do I need a different type of account?
In laymans terms I presume this means that the LSE couldn't match my request up with a seller to provide enough shares? I was buying 8ks worth, which is far from a lot on the stock market, so surprised I couldn't execute a trade.
Seems surprising in this modern day and age of technology that these thing happen.
Cheers
Seems surprising in this modern day and age of technology that these thing happen.
Cheers
CIS121 said:
In laymans terms I presume this means that the LSE couldn't match my request up with a seller to provide enough shares? I was buying 8ks worth, which is far from a lot on the stock market, so surprised I couldn't execute a trade.
Seems surprising in this modern day and age of technology that these thing happen.
Cheers
In most cases it isn't a technology matter, but just a case that there isn't anyone on the other side wanting to match your order. Especially around news flow one side of the book will thin right out.Seems surprising in this modern day and age of technology that these thing happen.
Cheers
Are you trading physical or an OTc such as a CFD or spread bet? This can and does have large implications.
If physical, do you know if you are looking to execute on a 'price improver' service from your broker? All this is is that your broker will sling the order at the RSPs first to see if they want it before hitting the exchange. Again, in a fast market the RSPs will have pulled their flow as they won't want to get scalped.
Some of the fastest execution onto the LSe is via a DMA CFD and not actually physical execution. Logically, this should not be the case as your OTC order is being routed to a clearing bank who then route to the exchange, whereas a retail physical broker will route direct to the exchange, but the hubs that the clearing banks use are much faster.
The fastest way for a retail client to get a trade onto the exchange is almost certainly a VPN connection via an API direct to a CFD broker connected up for DMA via something like TradingScreen. But, this is massive overkill in most cases and I'm afraid I suspect it is going to be far more likely that your issue boils down to one of two things, either no stock on the other side to match against or your broker's connection and more likely processing is weak.
Which broker have you been using?
DonkeyApple said:
In most cases it isn't a technology matter, but just a case that there isn't anyone on the other side wanting to match your order. Especially around news flow one side of the book will thin right out.
Are you trading physical or an OTc such as a CFD or spread bet? This can and does have large implications.
If physical, do you know if you are looking to execute on a 'price improver' service from your broker? All this is is that your broker will sling the order at the RSPs first to see if they want it before hitting the exchange. Again, in a fast market the RSPs will have pulled their flow as they won't want to get scalped.
Some of the fastest execution onto the LSe is via a DMA CFD and not actually physical execution. Logically, this should not be the case as your OTC order is being routed to a clearing bank who then route to the exchange, whereas a retail physical broker will route direct to the exchange, but the hubs that the clearing banks use are much faster.
The fastest way for a retail client to get a trade onto the exchange is almost certainly a VPN connection via an API direct to a CFD broker connected up for DMA via something like TradingScreen. But, this is massive overkill in most cases and I'm afraid I suspect it is going to be far more likely that your issue boils down to one of two things, either no stock on the other side to match against or your broker's connection and more likely processing is weak.
Which broker have you been using?
A fair bit of that was over my head! I'm quite old fashioned and use physical buying rather than spread betting or any of these alternatives. I've been using III since about 2001 - cheap and easy. I was more wondering if using a different broker may give better execution in volatile markets, but from your explanation it sounds unlikely and I'm not serious enough to consider more advanced and pricey alternatives. I did have a scary moment a few years ago trying to dump some RBS shares that were plummeting, but apart from that, my frustration is always on buying.Are you trading physical or an OTc such as a CFD or spread bet? This can and does have large implications.
If physical, do you know if you are looking to execute on a 'price improver' service from your broker? All this is is that your broker will sling the order at the RSPs first to see if they want it before hitting the exchange. Again, in a fast market the RSPs will have pulled their flow as they won't want to get scalped.
Some of the fastest execution onto the LSe is via a DMA CFD and not actually physical execution. Logically, this should not be the case as your OTC order is being routed to a clearing bank who then route to the exchange, whereas a retail physical broker will route direct to the exchange, but the hubs that the clearing banks use are much faster.
The fastest way for a retail client to get a trade onto the exchange is almost certainly a VPN connection via an API direct to a CFD broker connected up for DMA via something like TradingScreen. But, this is massive overkill in most cases and I'm afraid I suspect it is going to be far more likely that your issue boils down to one of two things, either no stock on the other side to match against or your broker's connection and more likely processing is weak.
Which broker have you been using?
Just out of interest Mr Apple - do you work in the city, or is this a pasttime?
Hi. Yes. My company designs algorithms for trading systems and we also run a hub and router system to channel automated flow from clients.
III's broking system is a skin of Halifax's share service. For the last 3 years they have been building their own platform and routing system so as to clear and settle directly themselves. This is actually die to go live at anytime if it has not done so already.
Halifax are just like any other retail bank when it comes to share execution: crap.
They are all the worts put there as they have invested very little in building their front end and as 99.9% of their clients have no need to rush they did not invest in superfast execution.
Rather shockingly, some of these 'online' systems were still just printing ticker instructions on the banks dealing desk for a dealer to manually execute until a short while ago. This is how online systems worked 10+ years ago.
If superfast execution is your imperative then I would either wait to see what iii's own clearing will be like or look for a broker who is aiming their service at traders. This is very hard as most traders will use a spread bet firm and it is these types of firms who have the latest tech for order routing (well for equities it is only IG)
III's broking system is a skin of Halifax's share service. For the last 3 years they have been building their own platform and routing system so as to clear and settle directly themselves. This is actually die to go live at anytime if it has not done so already.
Halifax are just like any other retail bank when it comes to share execution: crap.
They are all the worts put there as they have invested very little in building their front end and as 99.9% of their clients have no need to rush they did not invest in superfast execution.
Rather shockingly, some of these 'online' systems were still just printing ticker instructions on the banks dealing desk for a dealer to manually execute until a short while ago. This is how online systems worked 10+ years ago.
If superfast execution is your imperative then I would either wait to see what iii's own clearing will be like or look for a broker who is aiming their service at traders. This is very hard as most traders will use a spread bet firm and it is these types of firms who have the latest tech for order routing (well for equities it is only IG)
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