[kasey_junk]

That’s not really true in traditional HFT because resting orders no matter how slowly placed will take precedence over orders that are new.

Typically you’d have some combination of order fill for orders that cross the book, successful cancellation (which is where the real race is) and mechanical observation of tick to trade.

[650nanos]

> That’s not really true in traditional HFT because resting orders no matter how slowly placed will take precedence over orders that are new.

No. Not everything is FIFO.

You can be last to place a passive resting/limit order at a price and still be the first to receive a fill at that price. And yes, you had the advantage of seeing all the other passive orders at that price.

Examples: Pro-rata markets (SOFR interest rates, some US treasuries), designated market makers (futures, equities), etc.

Source: I work in HFT.

[nkaz001]

Is designated market maker able to get filled before an order in the FIFO order queue at NYSE, NASDAQ or CME?

[ickyforce]

CME documentation states:

"LMM – CME Designated Lead Market Makers are each allocated a configurable percentage of an aggressor order quantity before the remaining quantity passes to the next step."

Certain matching algorithms allocate orders to LLM before considering FIFO - specifically algorithm T (LMM w/o Top). So I guess it depends on how strict is your definition of "FIFO order queue".

https://cmegroupclientsite.atlassian.net/wiki/spaces/EPICSAN...

https://cmegroupclientsite.atlassian.net/wiki/spaces/EPICSAN...

(I don't know the internals of the mentioned exchanges)

[650nanos]

> Is designated market maker able to get filled before an order in the FIFO order queue at NYSE, NASDAQ or CME?

“Unfortunately, I cannot comment at this time.”

[WorkerBee28474]

I think on-the-floor traders actually do. I can't find the source to back that up, though.

[fmap]

This is NYSE specific: https://www.nyse.com/article/parity-priority-explainer

[nkaz001]

Thank you! I know that NASDAQ and CME also have designated market makers, but I couldn't find any specific privileges they have over non-market makers, apart from the different fee schedules. Is the ability of NYSE designated market makers to handle order fills a common practice across other exchanges?