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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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