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TechBizLines.com Forum  >Tests, Interviews & Employment  >  Employment  > FINRA - Tick Size Pilot Program/Trading and Quoting/EAO the CQ and T/Trade At/General
  Posted by smita_sahoo on : 3/7/2019 5:32:00 PM
Reply

1
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 11:50:00 PM
raghav_agarwal
3/7/2019 11:52:00 PM

Trade-At, ISO, and Trade-At ISO (TAISO) – Example Group #1

TAISO Order sender has assured D that all Protected Offers at or below

20.10 have been satisfied. The Trade-At prohibition does apply for this

security. Trading Center D may now match as follows:

• Order #1: Match 500 @ 20.025

• Order #2: Match 400 @ 20.05

• Order #3: Match 200 @ 20.10

• Order #4: Match 200 @ 20.10

• Order #4: Match 800 @ 20.10

Trading Center D can match the undisplayed size of Order #4 because

the inbound order is marked TAISO which indicates that the order

sender has satisfied all displayed size less than or equal to 20.10 which

permits Trading Center D to match undisplayed size up to and including

that price.
 
Reply
In reply to:"  "jasmin_patel  for his/her post on 3/7/2019 11:49:00 PM
smita_sahoo
3/7/2019 11:50:00 PM

Trading Center D receives the following order for a Test Group 3

security:

Buy 4000 @ 20.10 TAISO IOC

How could this order be handled by Trading Center D?



 
Reply
In reply to:"  "priyabrat_samal  for his/her post on 3/7/2019 11:45:00 PM
jasmin_patel
3/7/2019 11:49:00 PM

TAISO Order sender has assured Trading Center D that all Protected

Offers at or below 20.10 have been satisfied. The Trade-At prohibition

does not apply for this security. D may now match as follows:

• Order #1: Match 500 @ 20.025

• Order #2: Match 400 @ 20.05

• Order #3: Match 200 @ 20.10

• Order #4: Match 200 @ 20.10

• Order #4: Match 800 @ 20.10

Trade-At is not in effect for this security, so Trading Center D can match

displayed or undisplayed size at 20.10.
 
Reply
In reply to:"  "priyabrat_samal  for his/her post on 3/7/2019 11:45:00 PM
amit_sen
3/7/2019 11:48:00 PM

TAISO Order sender has assured Trading Center D that all Protected

Offers at or below 20.10 have been satisfied. The Trade-At prohibition

does not apply for this security. D may now match as follows:

• Order #1: Match 500 @ 20.025

• Order #2: Match 400 @ 20.05

• Order #3: Match 200 @ 20.10

• Order #4: Match 200 @ 20.10

• Order #4: Match 800 @ 20.10

Trade-At is not in effect for this security, so Trading Center D can match

displayed or undisplayed size at 20.10.
 
Reply
In reply to:"  "priyabrat_samal  for his/her post on 3/7/2019 11:45:00 PM
riya_chakrabarty
3/7/2019 11:47:00 PM

Trade-At, ISO, and Trade-At ISO (TAISO) – Example Group #1

Trading Center D receives the following order for a security which is not

in Test Group 3:

Buy 4000 @ 20.10 TAISO IOC

Assuming that Trading Center D accepts TAISO for a security which is

not in Test Group 3, how could this order be handled by Trading Center

D?
 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 11:45:00 PM
priyabrat_samal
3/7/2019 11:45:00 PM

ISO Order sender has assured D that all Protected Offers below 20.10

have been satisfied. . The Trade-At prohibition does apply for this

security. D may now match as follows:

• Order #1: Match 500 @ 20.025

• Order #2: Match 400 @ 20.05

• Order #3: Match 200 @ 20.10

• Order #4: Match 200 @ 20.10

Further matching is not permitted without satisfying B’s Protected Offer

price because D is only displaying 400 shares and matching more shares

at 20.10 would not be permitted under Trade-At.
 
Reply
In reply to:"  "priyam_das  for his/her post on 3/7/2019 11:43:00 PM
V_Joseph
3/7/2019 11:45:00 PM

Trading Center D receives the following order for a Test Group 3

security:

Buy 4000 @ 20.10 ISO IOC

How should this order be handled by Trading Center D?
 
Reply
In reply to:"  "rinku_banerjee  for his/her post on 3/7/2019 11:42:00 PM
priyam_das
3/7/2019 11:43:00 PM

Trade-At, ISO, and Trade-At ISO (TAISO) – Example Group #1

There is no change from today.

ISO Order sender has assured D that all Protected Offers below 20.10

have been satisfied. The Trade-At prohibition does not apply for this

security. D may now match as follows:

• Order #1: Match 500 @ 20.025

• Order #2: Match 400 @ 20.05

• Order #3: Match 200 @ 20.10

• Order #4: Match 200 @ 20.10

• Order #4: Match 800 @ 20.10

Trade-At is not in effect for this security, so D can match displayed or

undisplayed size up to 20.10.
 
Reply
In reply to:"  "rupali_saha  for his/her post on 3/7/2019 11:38:00 PM
rinku_banerjee
3/7/2019 11:42:00 PM

Trading Center D receives the following order for a security which is not

in Test Group 3:

Buy 4000 @ 20.10 ISO IOC

How could this order be handled by Trading Center D?
 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 11:13:00 PM
rupali_saha
3/7/2019 11:38:00 PM

Trade-At, ISO, and Trade-At ISO (TAISO) – Example Group #1

The following common elements apply to questions about the use of ISO and Trade-At

ISO tags in Example Group #1:

NBBO: 20.00 – 20.05 5 x 5

PROTECTED QUOTATIONS:

SOURCE PROTECTED QUOTATION

A 20.00 – 20.05 5 x 5

B 20.00 – 20.10 2 x 2

C 20.00 – 20.05 3 x 3

D 20.00 – 20.10 4 x 4

E 20.00 – 20.15 1 x 1

Order Recipient is D

D holds the following buy Orders:

ORDER # ORDER

11 Buy 400 @ 20.00

12 Buy 600 @ 20.00 – Do Not Display

.

D holds the following sell Orders:

ORDER # ORDER

1 Sell 500 – Midpoint Pegged

2 Sell 400 @ 20.05 – Do Not Display

3 Sell 200 @ 20.10 Displayed

4 Sell 1000 @ 20.10 – Display 200 Reserve 800

5 Sell 1000 @ 20.15 – Display 300 Reserve 700
 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 11:12:00 PM
raghav_agarwal
3/7/2019 11:13:00 PM

Yes. By routing to satisfy all displayed size at 20.00, the Trading

Center has meet the requirements to match against undisplayed size

at 20.00. As is the case with sending ISO orders under Reg NMS

today, the Trading Center does not have to wait to see what, if any,

executions are returned on the routed order.



 
Reply
In reply to:"  "jasmin_patel  for his/her post on 3/7/2019 9:35:00 PM
smita_sahoo
3/7/2019 11:12:00 PM

Trade-At Examples (Test Group 3 Securities)

NBBO: 20.00 – 20.10 2 x 1

PROTECTED QUOTATIONS:

SOURCE PROTECTED QUOTATION

NYSE 20.00 – 20.10 2 x 1

Trading Center receives a new order:

 Order #1: Sell 500 @ 20.00

Trading Center routes:

 Sell 200 @ 20.00 ISO IOC ? NYSE

NYSE executes the routed order as follows:

• 50 @ 20.05 (matched against undisplayed liquidity)

• 150 @ 20.00

May the Trading Center execute the balance of Order #1 at 20.00?
 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
jasmin_patel
3/7/2019 9:35:00 PM

Like any transaction that is reported late, trades submitted on an “asof” basis must be compliant with the Trade-At prohibition at the time of

order execution.
 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
amit_sen
3/7/2019 9:34:00 PM

How will the Trade-At Prohibition be applied when an As-Of trade is

being submitted?



 
Reply
In reply to:"  "priyabrat_samal  for his/her post on 3/7/2019 9:17:00 PM
riya_chakrabarty
3/7/2019 9:18:00 PM

Yes. Sending either ISO or TAISO (or a combination of them) to

satisfy all Protected Quotations at a price at which it would trade

through or trade at concurrently with matching against undisplayed

liquidity at the Trade-At price is an exception to the Trade-At

Prohibition. Please note, however, that a user sending a TAISO

represents that it simultaneously routed orders to execute against all

Protected Quotations priced better than or equal to the Trade-At price

while a user sending an order marked as ISO only represents that it

simultaneously routed orders to execute against all Protected

Quotations priced better than the Trade-At price.
 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
priyabrat_samal
3/7/2019 9:17:00 PM

Can the requirements of the Trade-At Prohibition be met by sending

either an ISO or TAISO to satisfy all displayed liquidity at a price?



 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
V_Joseph
3/7/2019 8:59:00 PM

No, orders with both a displayed quantity and a reserve quantity may

be executed only up to the size of the displayed portion without having

to route orders to execute against all other Trade-At Protected

Quotation unless the order is either matched against an order marked

TAISO or falls under another exception to the Trade-At prohibition.



 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
rinku_banerjee
3/7/2019 8:58:00 PM

Can an order in a Test Group 3 security with a displayed quantity and

a reserve quantity be fully executed without satisfying all Trade-At

Protected Quotation?



 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
priyam_das
3/7/2019 8:58:00 PM

No, orders with both a displayed quantity and a reserve quantity may

be executed only up to the size of the displayed portion without having

to route orders to execute against all other Trade-At Protected

Quotation unless the order is either matched against an order marked

TAISO or falls under another exception to the Trade-At prohibition.



 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
rupali_saha
3/7/2019 8:56:00 PM

General

Executions during a crossed market are exempt from the Trade-At

rule. Please consult the rules of each Trading Center on whether the

execution of orders pegged to the midpoint of the NBBO are permitted

during a crossed market.



 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 8:35:00 PM
raghav_agarwal
3/7/2019 8:55:00 PM

Can a Trading Center execute an order in a Test Group 3 security that

is pegged to the midpoint of the NBBO at the price of a Protected

Quotation during a crossed market?



 
Reply
In reply to:"  "amit_sen  for his/her post on 3/7/2019 8:34:00 PM
smita_sahoo
3/7/2019 8:35:00 PM

The Trading Center can execute an order in a Test Group 3 security

that is pegged to the midpoint of the NBBO against displayed orders

at the locking price, but only up to the size of its displayed order.

The Trading Center cannot execute an order in a Test Group 3

security that is pegged to the midpoint of the NBBO against

undisplayed orders at the locking price, including any undisplayed

portions of a displayed order, fully undisplayed orders, or a contra side

order that is also pegged to the midpoint of the NBBO.
 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
amit_sen
3/7/2019 8:34:00 PM

Can a Trading Center execute an order in a Test Group 3 security that

is pegged to the midpoint of the NBBO at the price of a Protected

Quotation during a locked market?



 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
jasmin_patel
3/7/2019 8:34:00 PM

The Trading Center can execute an order in a Test Group 3 security

that is pegged to the midpoint of the NBBO against displayed orders

at the locking price, but only up to the size of its displayed order.

The Trading Center cannot execute an order in a Test Group 3

security that is pegged to the midpoint of the NBBO against

undisplayed orders at the locking price, including any undisplayed

portions of a displayed order, fully undisplayed orders, or a contra side

order that is also pegged to the midpoint of the NBBO.
 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
priyabrat_samal
3/7/2019 8:33:00 PM

No, like other non-displayed orders, odd lots sized orders that are not

displayed on either the SIP feed or an SRO’s Quotation Feed cannot

be executed without satisfying all Trade-At Protected Quotation,

unless another exception applies.



 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
riya_chakrabarty
3/7/2019 8:33:00 PM

Can a Trading Center execute an order in a Test Group 3 security that

is pegged to the midpoint of the NBBO at the price of a Protected

Quotation during a locked market?



 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
V_Joseph
3/7/2019 8:32:00 PM

Can odd lot sized orders or order portions of a mixed lot order in a

Test Group 3 security that are not displayed on a SRO Quotation

Feed be executed by the SRO at the Trade-At Protected Price?



 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
priyam_das
3/7/2019 8:24:00 PM

Yes, under the display exception set forth in Section VI(d)(1) of the

Plan, odd lot sized orders and odd lot portions of mixed lot orders that

are displayed on a SRO Quotation Feed may be executed at the price

of the Trade-At Protected Quotation, but only up to the size of the

displayed quotation on the SRO Quotation Feed.

However, odd lot sized orders and the odd lot portions of mixed lot

sized orders are not Protected Quotations. Therefore, odd lot sized

orders and odd lot portions of mixed lot sized orders that are displayed

on a SRO Quotation Feed are not protected by the Trade-At

Prohibition.
 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
rupali_saha
3/7/2019 8:23:00 PM

General

Will odd lots and the odd lot portion of mixed lot orders in a Test

Group 3 security priced equal to a Trade-At Protected Quotation be

eligible for execution without having to satisfy all Trade-At Protected

Quotations that are displayed in round lots?
 
Reply
In reply to:"  "raghav_agarwal  for his/her post on 3/7/2019 7:53:00 PM
rinku_banerjee
3/7/2019 8:23:00 PM

Yes, under the display exception set forth in Section VI(d)(1) of the

Plan, odd lot sized orders and odd lot portions of mixed lot orders that

are displayed on a SRO Quotation Feed may be executed at the price

of the Trade-At Protected Quotation, but only up to the size of the

displayed quotation on the SRO Quotation Feed.

However, odd lot sized orders and the odd lot portions of mixed lot

sized orders are not Protected Quotations. Therefore, odd lot sized

orders and odd lot portions of mixed lot sized orders that are displayed

on a SRO Quotation Feed are not protected by the Trade-At

Prohibition.
 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
raghav_agarwal
3/7/2019 7:53:00 PM

TAISOs sent to an exchange should include the value “y” under FIX

tag 18. When sending a TAISO to any Trading Center that is not an

exchange, please consult with that Trading Center. 



 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
jasmin_patel
3/7/2019 7:52:00 PM

How should an order sender tag an order for a Test Group 3 security

as TAISO?
 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
smita_sahoo
3/7/2019 7:52:00 PM

TAISOs sent to an exchange should include the value “y” under FIX

tag 18. When sending a TAISO to any Trading Center that is not an

exchange, please consult with that Trading Center. 



 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
amit_sen
3/7/2019 6:23:00 PM

An inbound order tagged as TAISO tells the Trading Center that

receives the order that the order sender has satisfied all Protected

Quotations at a price better than or equal to the limit price of the

TAISO order. The recipient may rely on the order sender to have

satisfied all such orders. Therefore, the receiving Trading Center may

match the inbound order against undisplayed liquidity at a price equal

to the inbound TAISO order’s limit price.



 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
priyabrat_samal
3/7/2019 6:22:00 PM

What does a TAISO tag mean on an order in a Test Group 3 security?



 
Reply
In reply to:"  "V_Joseph  for his/her post on 3/7/2019 6:01:00 PM
riya_chakrabarty
3/7/2019 6:22:00 PM

An inbound order tagged as TAISO tells the Trading Center that

receives the order that the order sender has satisfied all Protected

Quotations at a price better than or equal to the limit price of the

TAISO order. The recipient may rely on the order sender to have

satisfied all such orders. Therefore, the receiving Trading Center may

match the inbound order against undisplayed liquidity at a price equal

to the inbound TAISO order’s limit price.



 
Reply
In reply to:"  "rinku_banerjee  for his/her post on 3/7/2019 5:46:00 PM
V_Joseph
3/7/2019 6:01:00 PM

An ISO Day order is eligible to be executed and displayed at its limit

price and indicates in all Test Groups that the sender has satisfied all

Protected Quotations priced better or equal to the order’s price.



 
Reply
In reply to:"  "rinku_banerjee  for his/her post on 3/7/2019 5:46:00 PM
priyam_das
3/7/2019 6:00:00 PM

What does an ISO DAY tag mean on an order in a Test Group 3

security?
 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 5:32:00 PM
rinku_banerjee
3/7/2019 5:46:00 PM

An order marked ISO IOC tells the receiving Trading Center that the

order sender has satisfied all Protected Quotation at a price better

than the limit price of the inbound order. The recipient may rely on the

order sender’s representation that it satisfied all such Protected

Quotation. The recipient may not rely on the order sender as having

satisfied all Protected Quotation at a price equal to the inbound order’s

limit price and, therefore, the receiving Trading Center is responsible

to satisfy all Protected Quotation at a price equal to the inbound

order’s limit price before matching against its own orders at that price

in excess of the Trading Center’s displayed protected size unless

another exception the Trade-At rule applies. Please each Trading

Center for a description of the IOC time-in-force instruction.
 
Reply
In reply to:"  "smita_sahoo  for his/her post on 3/7/2019 5:32:00 PM
rupali_saha
3/7/2019 5:44:00 PM

What does an ISO IOC tag mean on an order in a Test Group 3

security?
 
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