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September 12, 2002
Mastertrader.com
is pleased to announce the addition of NITE as a new trade route.
The NITE trade route allows Stop-Market and Stop-Limit on Nasdaq
stocks. Through NITE, Mastertrader.com is also able to offer features
not previously available. You will now be able to place Good-Til-Cancel
Limit and Good-Til-Cancel Stop Orders as well as placing Limit and
Stop Orders pre-market to go live once the market is open.
Execution
Process: Orders will be introduced to a three-step automated
process designed to facilitate executions with minimal manual handling.
Orders will only be executed during regular market hours between
9:30AM EST and 4:00PM EST. Orders may be placed starting at 8AM
EST that will go live once the market opens.
| Step
1) |
Market
and marketable limit orders will attempt to be filled internally
by NITE for automated execution against their own order book.
A marketable limit order is defined when the buy limit price
is equal to or higher than the National Best Offer price and
the sell limit price is equal to or lower than the National
Best Bid price at the time of receipt. A non-marketable limit
order will automatically go to Step 3.
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| Step
2) |
If no match
is found in Step 1, the order will become eligible for an automated
execution through market making activities at the prevailing
inside market.
|
| Step
3) |
If the
order is still not matched, the entire order, or remaining balance,
will be routed to an ECN through which Knight has a direct connection.
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| Historically,
20% of the orders are filled in Step 1, 10% in Step 2, and 70%
in Step 3. |
Additional
Order Types
| Stop
Orders: |
Stop orders
are triggered by the National Best Bid/Offer (NBBO) for Nasdaq
stocks. Last price does NOT trigger stops.
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| Stop-Market: |
When the
NBBO triggers the stop, a market order will start at Step 1.
For example, if you place a protective sell-stop at $39.53 and
the NBBO
falls to Bid $39.52 x Ask $39.58 and Last Price $39.54, the
bid of $39.52 would trigger the market order and you would be
filled based on the three-step process. The Last Price has no
affect on the stop order.
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| Stop-Limit: |
When the
NBBO triggers the stop, a limit order will start at Step1. For
example, if you place a protective sell-stop at $39.53 (Limit
$39.50) and the
NBBO falls to Bid $39.52 x Ask $39.58 and Last Price $39.54,
the bid of $39.52 would trigger the limit order of $39.50 and
you would be filled based on the three-step process. The Last
Price has no affect on the stop order.
Note, if the limit order is non-marketable, it will automatically
proceed to Step 3.
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Good-Til-Cancel
Orders (GTC)
GTC
Orders are available for both Limit and Stop Orders and will reside
on NITE's system. GTC orders will remain on NITE's system for up
to one year from when the trade was placed.
Over-The-Counter
Bulletin Board (OTCBB)
NITE
accepts OTCBB orders.
Fee for NITE
There
will be an additional $.01/share pass-through fee with a $1 minimum.
If you have
any questions, please feel free to contact us. Thank you.
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