On the other hand, by providing incentives for market participants to quote at the NBBO
, the depth and stability of the NBBO
quotes may improve.
An investor's order, regardless of which broker happens to handle it, is always filled at a price at least as good as the NBBO
at the time of execution.
Thus, the Benchmark Quote Exception implicitly defines the market wide reference price for the evaluation of a trade through as the least aggressive NBBO
Ask and NBBO
Bid (together the NBBO
) over the previous one second of trading.
Moreover, our NBBO
performance is a real testament to the quality of our markets, which we believe will continue to remain strong in 2015 as well," said Thomas P.
Redline accelerates NBBO
delivery for our customers and significantly reduces our hardware requirement," said Adam Mazur, managing director and co-head of business development, Goldman Sachs Electronic Trading.
Consistent with Chordia, Roll, and Subrahmanyam (2005), we use a variable delay rule to match trades with the prevailing NBBO
Using pure price/time priority, SIGMA X Canada will anonymously match buyers and sellers and will offer guaranteed price improvement relative to the NBBO
Spoofing involves placing small limit orders at prices that improve the National Best Bid or Offer (NBBO
) for a security, allowing the trader to take advantage of the improved prices by executing larger orders at another firm that offers execution guarantees at the NBBO
According to the complaint, IB used a flawed "auto-liquidation" system, which liquidated securities at prices inferior to NBBO
(National Best Bid or Offer), and then revalued the entire portfolio based upon those incorrect prices, which resulted in the account entering a death spiral leading to substantial losses.
For purposes of calculating the effective spread on executed marketable orders, BATS measures the execution price against the NBBO
in effect at the millisecond in which the execution occurs.
Groundbreaking solution composites direct exchange feeds with the SIP feeds to calculate the NBBO
in as little as 5 microseconds
Indeed, this facility will allow dealers to provide clients, who have tradable orders, with a trade price better than the NBBO
of all transparent marketplaces in Canada.