Skip to main content
Track Tape reading
12 / 20
Search the archiveLibrary
Library

2006issue C021

Fill entitlement, hybrid routing, and pairs sequencing

Competing interest at the same price is generally allocated by arrival time first. Editorial reading: treat that entitlement map, and how hybrid-routing changes it, as the first filter on tape-reading and pairs-sequencing, and only then complete the second leg.

  • Time-priority generally allocates competing interest at the same price by arrival time first.
  • After any partial fill, remaining size can sit on parity with other same-price interest; one described response is to cancel, reprice, and rejoin. Size-out can skip a smaller resting order, and a crowded short or limit can still receive a trade-through-fill.
  • The designated-participant may match, share, or improve a print for fairness but is described as unable to initiate a tick or take the order outright. Broker-parity can still leave an individual booked order without the print.
  • Pairs-sequencing is described as selling the appropriate name first while checking relative strength, peers, the broad tape, a possible breakout price, and momentum. A breakout-filter is not the stock print alone.
Entries in this reading3 entries
Current trackTape reading21 readingsOrder routing65 readingsPairs trading70 readings

Fill entitlement before the idea

Tape-reading is reading print sequence, size, and character as a live signal from price structure, not as a substitute for knowing who is entitled to the next fill.

Editorial reading: treat fill entitlement as the first filter on tape-reading and pairs ideas. Map who is due the next print, how a hybrid auction-plus-electronic venue changes that map, and only then sequence the second leg.

Time-priority, parity, size-out, and trade-through-fill

Competing interest at the same price is generally allocated by arrival time first. Time-priority means that, at one price, earlier-arriving interest is generally entitled to stock before later interest.

Once any portion of an order is filled, the remainder can sit on parity with other same-price interest. Parity means remaining size may share later allocations instead of keeping an exclusive place in line. One described response is to cancel, reprice, and rejoin.

If one resting order cannot cover the opposite-side quantity and another order can, the smaller order can be skipped. That is size-out.

A short or limit order at a crowded price can wait behind earlier interest and still fill if that price is traded through. That is a trade-through-fill.

The designated-participant and broker-parity

The designated-participant is a central auction agent who may match or share an order for fairness and may improve price, but is described as unable to initiate an uptick or downtick or take the order outright.

Parity is described as applying to brokers, and to the book as a group versus the crowd. Broker-parity means an individual booked order can still miss a print.

Hybrid-routing still leaves tape-reading in play

Combining a centralized auction with fast electronic execution is expected to keep a designated-participant and manual overrides for large orders. That pairing is hybrid-routing. Tape-reading is still treated as a relevant skill.

Pairs-sequencing and the breakout-filter

A listed basic-technique set names nine approaches: opening-only orders, scalping, post-opening sector work, relative strength, momentum, merger spreads, pairs, contrarian volatility, and breakouts.

Pairs work is described as typically selling the appropriate name first while checking relative strength versus peers and the broad tape, a possible breakout price, and momentum. That order of work is pairs-sequencing.

A breakout is not taken from the stock print alone. The described checklist includes a futures premium to fair value and whether the name is stronger than its peer group. That is the breakout-filter.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
12 of 20 in the Tape reading track
20061-1 pp.Next on Tape readingAlerts over resting stops, with tape-reading at the exitThe described workflow keeps the stop-loss as a pre-trade bound and leaves the exit uncommitted until a price alert brings the trader back to the tape.
All readings on this track · 20 readings
  1. 1986Open outcry hand signals as order routing
  2. 1989Finishing a market order in a first index-pit session
  3. 2001Ticket charges, internalization, and hidden size on the tape
  4. 2003Opening auction indications, premium and print size
  5. 2003Listed open order routing and the short-sale tape
  6. 2003Opening indication, one-sided envelope, and the sector tape check
  7. 2003Opening auction fills and the post-print tape
  8. 2004Specialist prints, opening exits and live tape filters
  9. 2005A tape-reading case study of support, resistance, and breakout confirmation
  10. 2005Tape flips versus idle capital: a process critique
  11. 2005Read the tape, name the liquidity job, then route for price
  12. 2006Fill entitlement, hybrid routing, and pairs sequencing
  13. 2006Alerts over resting stops, with tape-reading at the exit
  14. 2006When crowd levels diverge from Fibonacci support
  15. 2008Perfect prints before the chart
  16. 2008Hidden size, tape delay, and pairs shorts belong in the trade rule
  17. 2010Inside the spread: why OHLC bars hide the buy-sell shift
  18. 2010Specialist pair books sized for dividends and tape
  19. 2016Tape reading as judgment under distraction
  20. 2018Tape-reading breakouts with increment stops
By fieldOrder types and routing87 readingsBy year2006150 readings
All 21 readings tagged Tape reading
Also on Tape reading5 readings
2008Hidden size, tape delay, and pairs shorts belong in the trade rule1986Open outcry hand signals as order routing1989Finishing a market order in a first index-pit session2001Ticket charges, internalization, and hidden size on the tape2003Listed open order routing and the short-sale tape