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December 12, 2003
Please be aware
that if you place an ARCA Listed Stop Order either pre-market or
before the stock opens, the ARCA Exchange may cancel the stop
order before or at the time the stock opens for trading.
Why Does This
Happen?
When you place
an ARCA Listed Stop Order during market hours, ARCA will check the
stop price to see if it would trigger immediately upon receiving
the order. If it would trigger immediately, it will not accept the
order.
Three conditions
could cause an ARCA Listed Stop Order placed either pre-market or
before the stock opens to cancel:
- At 9:30am
EST, when the order goes live, the order is canceled because the
National Best/Bid Offer (NBBO) would trigger the stop. Since the
NYSE and other regional exchanges may not open the stocks at 9:30am
EST, the bad quotes published would make the stop order trigger
immediately. Since it would trigger immediately, they do not accept
the order.
- Before 9:30am
EST, if orders are being quoted by the ARCA Exchange that are
outside of the stop order, ARCA will not accept the stop order.
- After 9:30am
EST but before the stock opens, when the order goes live, the
order is canceled because the National Best/Bid Offer (NBBO) would
trigger the stop. Since the NYSE and other regional exchanges
may not open the stocks at 9:30am EST, the bad quotes published
would make the stop order trigger immediately. Since it would
trigger immediately, they do not accept the order.
If you have
any questions or concerns, please feel free to contact us.
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