BATS, Nasdaq Add Flash Orders : Wall Street Letter

BATS Exchange and the Nasdaq Stock Market are adding order types mimicking functionality on Direct Edge, which has been gobbling up market share. The so-called flash orders--available on the ECN but not the exchanges until the Securities and Exchange Commission nod of approval to Nasdaq last week--are flashed internally to members for price improvement before going out to the public. They have become a preferred tool for traders looking to hide their intentions, so the exchanges are increasingly adopting them despite concerns that some market participants may be disadvantaged by their exclusive nature.

BATS and Nasdaq's orders will be available by the end of next week. On Direct Edge, flash orders check the ECN's book first, and then, if they aren't matched, are sent out to Direct Edge's twenty-five plus non-traditional liquidity providers. ...

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BATS, Nasdaq Add Flash Orders

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