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by nkaz001 723 days ago
Is designated market maker able to get filled before an order in the FIFO order queue at NYSE, NASDAQ or CME?
3 comments

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)

> 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.”

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