3 rules of NASDAQ - Is it same in NSE

[tarakesh]

@Nithin,

In a book Value in Time… came across following statement from author…
"I would like to point out
three basic rules that govern the largest stock markets (NASDAQ, New
York Stock Exchange, etc.):

1. The price precedence rule says that if you offer to sell a stock at the
   lowest price, your offer will be executed first. (If simultaneously John
   offers to sell his shares at $10, Jim at $10.01, and Martin at $9.99,
   Martin’s order will be executed first.) This guarantees that buyers also
   get the best price for the stock they purchase. Buy orders that offer the
   highest buying prices are also executed first.
2. The time precedence rule says that buy or sell orders that have the
   same price are ranked in their order of submission: The first to arrive is
   executed first. (If John offers to sell his shares at $10, and five seconds
   later Martin also offers his shares at $10, John’s order will be executed
   first, followed by Martin’s.)
3. A lesser-known rule is called the public order precedence rule. This
   rule states that members of a public exchange cannot execute their
   own orders ahead of orders from the general public that are standing
   atthesameprice.Thisrulewascreatedtoincreaseinvestorconfidence
   that members of the exchange will not use their superior information
   to their advantage by trading ahead of the public."

firs 2 points are clear and fine. Please refer the 3rd point – public order precedence rule followed in NASDAQ. Is this so in NSE ?

[Morpheus]

@tarakesh

Please refer the 3rd point – public order precedence rule followed in NASDAQ. Is this so in NSE ?

No one really knows whats going on inside that building.

Some traders reported on this forum, their orders getting triggered beyond the high and low of the day.

I placed a stop loss order which got executed, but I don't see my stop loss price on any charts be it on NEST, NSE, Amibroker or any other chart?

I was long Banknifty at 14900 and had placed a stoploss at14812. The stop loss got executed, but when I look at the chart be it on NEST, NSE, Yahoo or anywhere else, I don’t see that price of 14812. How is this possible? Is it a problem with the platform?

[siva-reddy]

@tarakesh

1. A lesser-known rule is called the public order precedence rule. This
   rule states that members of a public exchange cannot execute their
   own orders ahead of orders from the general public that are standing
   atthesameprice.Thisrulewascreatedtoincreaseinvestorconfidence
   that members of the exchange will not use their superior information
   to their advantage by trading ahead of the public."

firs 2 points are clear and fine. Please refer the 3rd point – public order precedence rule followed in NASDAQ. Is this so in NSE ?

As I am aware this rule is not applied on NSE, also we can’t compare rules of US markets to ours due to various reasons.
In US dark pools exits, also orders can be directly traded with liquidity providers, no need to send to exchanges unlike in India where all orders need to be routed to exchange. We have only order driven trades where as in US along with order driven trades we can have quote driven trades means bid and ask is defined by liquidity makers and not based on supply and demand( order driven).Also US rules are very complex and vary from exchange to exchange, different to dark pools, different to each liquidity provider, I personally opine in a way our rules are way easy and less complex hence easy to understand and difficult to manipulate.

[goldb]

we have only one rule…
we don’t follow any rule.