Citi's LavaFlow ECN Launches New Hide To Comply Order

Published: 22-Sep-2009

Allows FLOW liquidity providers to enter displayable limit orders at aggressive prices and obtain the best possible time priority at the order's posted price level

Citi's LavaFlow ECN (FLOW) has announced a new order type, Hide to Comply. Reportedly, it is an execution instruction that allows FLOW liquidity providers to enter displayable limit orders at aggressive prices and obtain the best possible time priority at the order's posted price level, all while receiving a rebate.

According to the Citi, Hide to Comply adjusts aggressively priced orders such that they are hidden on entry, and their limit price set to the opposite side of the Nation Best Bid and Offer (NBBO). While hidden at this price, the order will be eligible for a full rebate. When the NBBO updates such that the order is no longer at a locking price, the order will be displayed at this new limit, maintaining its original time priority; the order will not be re-priced.

Shane Swanson, head of transaction services, Lava, said: “Citi's LavaFlow ECN is continually creating advanced functionality and Hide to Comply is the latest example of our commitment to enhancing the product to meet the best price and execution needs of our customers. Hide to Comply, along with other features we have launched this year, is one of the many ways we provide industry leading functionality to the trading community.”

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