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I am not sure if ARCA will route to the NYSE -- ?? NAZ only?
----- Original Message -----
From: "Andy Demartini" <aed@xxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Thursday, March 21, 2002 10:02 AM
Subject: TS6 and the QQQ's
> I frequently trade the QQQ's and have just recently opened an account with
> TradeStation. My motivation for trying TS6 was to work with the fully
> automatic execution. I've done some significant programming here to drive
> orders into RealTick from TS2000, so the prospect getting a complete tool
> for that combines modeling and execution was enticing.
>
> This is just a heads-up for others looking to trade QQQ through TS6. At
> this point in time, Easy Language can use only TS6's "Intelligent"
routing.
> After a small number of automatic executions, it was clear that
> "Intelligent" means "route to the NYSE". In every instance, there were
> better prices available on Island, but TS6 would only route the order to
the
> exchange market maker. And we know that means executing orders at
"retail"
> instead of "wholesale".
>
> The problem is made worse when you open a Level 2 window for QQQ.
> TradeStation is showing only marketmakers, with no way to see ISLD or
ARCA.
> Again, everyone who trades QQQ knows what a disadvantage this omission is.
> I've started opening up the Island Java book to see where the real market
> is. It's my hunch that you won't see any ECN quotes on other NYSE issues,
> either.
>
> I emailed TradeStation Securities and asked them to explain what
> "Intelligent" routing meant in the case of the QQQ. Unfortunately, they
> responded that the Intelligent routing algorithm is proprietary, so they
> couldn't tell me how it selects the NYSE as the best route for every
order.
> As it stands, trading QQQ through TS6 is no better than any web-based
> discount house. I hope they will start to recognize what it takes to be a
> direct access broker, it would be a shame to waste all that software
> development work on retail-class execution capabilities.
>
> Just a heads-up.
>
> Andy Demartini
>
>
>
>
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