- Jan
- 31
- 2007
- 8:53 AM
What do sweep orders sweep, exactly?
- By: Ray Pellecchia
- File Under: NYSE, NYSE
A reader on the sell side asks:
As you previously mentioned, sending NYSE an ISO, the order would be immediately executed or cancelled. What happens if NYSE is offered at the NBBO at 20.01 for 1,000 shares and I send an ISO order 20.02 for 5,000 shares - could I tap into the reserves and/or Order Book if available or is does the IOC order just take the inside display then cancel?
-- Kevin
Kevin -- Your Intermarket Sweep Order would first take the 1,000 shares at 20.01, and any reserves and CAP orders at that price, up to your 5,000-share limit. If the order is not completely filled at that point, it would sweep to what's available at 20.02 -- again, including book, reserve and CAP orders, up to the 5,000-share limit. If it is not filled at that point, the unexecuted remainder would be cancelled.
Hope that helps, Kevin. Thanks for writing, and thanks to my HBCs for their guidance on this answer.
Tags: New York Stock Exchange, Hybrid Market, NYSE, NYSE Group, NYX, trading, stock market
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