How does priority work on fully hidden orders? Are they always at the back of the line?
Thanks for the clarification on the NBBO ramifications on wholesalers. I have never worked on a order flow trade and would love to see an insider account of them (its sort of what I was hoping Flash Boys would be about).
Yeah for a given price, fully hidden and the non-displayed portion of iceberg orders will be ranked (generally by time priority) behind any displayed shares. Most of the rules are meant to incentivize displayed size.
Non-displayed orders and the non-displayed portion of iceberg orders are generally put in the back of the line behind all displayed liquidity. There are some exceptions, such as the BATS "hide not slide" order.
Thanks for the clarification on the NBBO ramifications on wholesalers. I have never worked on a order flow trade and would love to see an insider account of them (its sort of what I was hoping Flash Boys would be about).