US equities trading platform Direct Edge has introduced a new order type called Hide Not Slide, which allows traders to hide orders that were originally submitted as display-eligible and adjust their price while keeping their place in the order book queue.
Direct Edge said the new order type gives customers an additional choice in fast-moving markets and also respects the needs of the platform’s depth-of-book market data feed subscribers to minimise the dissemination of orders that appear to ‘lock’ the national market – i.e. those where the bid is the same as the ask price.
Without Hide Not Slide, if the national best bid is 0.10 and best offer is 0.11, a company posting a display-eligible order to buy at 0.11 would not have its order displayed because it would lock the market. The order would therefore be re-priced to 0.10, posted on the relevant Direct Edge book and displayed. If the market moves and the offer at 0.11 disappears, the order would be re-priced back to 0.11, but would lose priority because it would receive a new time stamp.
With Hide Not Slide, the initial 0.11 order would be posted to the book as a hidden order but simultaneously displayed at 0.10 in the Direct Edge depth-of-book feed, and so would not appear to be locking the market. If the market moves and the 0.11 offer disappears, the hidden order at 0.11 is displayed and maintains its priority, while the 0.10 displayed order is discontinued.
Hide Not Slide orders are eligible for a full rebate upon execution in all cases.
In addition, Direct Edge has improved the logic for orders that are partially cancelled so that users can reduce the size of orders without losing their place in the queue.
The platform will also introduce a price promotion for June, in which it will makes its ‘super tier’ rebate, which pays $0.003 adding liquidity to its EDGX trading platform in all securities priced over $1, available to all customers. The take fee will remain $0.0028.
The super tier rebate is normally only available to users if on a daily basis they either: add 40 million shares to either of the EDGX or EDGA trading platforms or both combined; add 20 million shares to either or both platforms and route 20 million shares or more through EDGA; or add 10 million shares or more to EDGX, as long as added liquidity on the platform is at least 5 million shares greater than the previous calendar month.