Alpha Classic Dark Orders
Alpha Classic Dark offers fully hidden orders in the form of non-displayed limit orders and pegged order types (Dark Orders).
A variety of unique features are offered to accommodate a wider range of dark strategies, including more efficient dark active sweeping strategies, and to help facilitate the achievement of best execution when executing those dark strategies on behalf of clients.
- Posting dark orders on Alpha Classic Dark facilitates continuous access to orders otherwise seeking interaction with Alpha Classic displayed order book, providing increased fill opportunities.
- Liquidity takers can find significant value through meaningful price improvement and reduced trading costs.
Pegged Order Types
Pegged order types allow participants to better manage their orders and maintain optimal order book positioning by allowing their booked order price to float in reference to current market prices. Pegged order types available on Alpha Classic Dark include the Mid-Point Peg, and Minimum Price Improvement Peg.
The following summarizes the key attributes of Alpha Classic dark pegged order types:
| Pegged Order Type | Peg Value Reference | Offsets Permitted | Tick Increments for Execution and Stated Limits | Handling when Pegged Value > Stated Limit |
|---|---|---|---|---|
| Mid-Point Peg | Mid-point of Protected NBBO | No offsets | Half tick | Non-executable when mid-point exceeds stated limit |
| Minimum Price Improvement Peg | One-tick better than same-side Protected NBBO, except when spread is one tick in which case pegs to half tick | No offsets | Half tick | Executable at stated limit |
Non-displayed Dark Limit Orders
Dark limit orders can be entered at any price, allowing for the provision of dark liquidity at set prices. Dark limit orders will trade upon entry with contra-side visible liquidity at the Protected NBBO, subject to regulatory requirements applicable to at-the-quote executions.
Additional Dark Order Features and Conditions
Users of Dark Orders are able to reduce signaling and information leakage that can result in market impact through the use of Minimum Quantity (MinQty) and Minimum Interaction Size (MIS) conditions. MinQty and MIS are optional instructions that may be submitted on Dark Orders and SDL orders.
Minimum Quantity: Use of MinQty prevents a Dark Order or SDL Order from trading, unless the total tradable volume meets or exceeds the volume specified in the MinQty instruction.
Minimum Interaction Size: The MIS instruction determines the minimum size that any single contra-side order must be in order to be eligible to trade against the ‘MIS order'. For determining whether a contra-side order can trade against a MIS order, eligibility is based on the entered size for an incoming contra-side order, and the total remaining volume for a resting contra-side order.