ECN Orders Frustrate Nasdaq Traders
Traders Magazine, September 2001
Orders placed on ECNs are gum ming up SuperSOES, Nasdaq traders say, often forcing them to execute away from the inside. Scott Littman, head of Nasdaq trading at Knight Trading Group, says his traders' orders often get stuck in a SuperSOES queue whenever an ECN is on the inside. Rather than wait for their orders to reach the front of the line, Littman's traders are executing at the next best prices. "To find liquidity we must execute through the NBBO," Littman told the audience at the Security Traders Association's Fifth Annual Technology Conference in Irving, Texas. ECN quotes slow the SuperSOES matching process because they are only accessible through SelectNet. ECNs have refused to allow automatic SuperSOES executions against their quotes.
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