Pegged Orders

What this video covers

• What a Pegged Order is: a Limit Order that does not route, and why the limit price caps the working price
• Why pegged orders never route to an away market, even when the dynamic reference price becomes aggressive
• How Market Pegged Orders follow the protected best offer (PBO) for buys and protected best bid (PBB) for sells, with offsets limited to two decimals
• How Market Pegged Orders are hidden, ranked Priority 3, excluded from auctions, and rejected or canceled when no contra quote exists
• How Primary Pegged Orders follow the same side of the market, allow no offset, rank display and reserve interest separately, and participate in auctions except the Closing Auction
• How Discretionary Pegged Orders begin at the protected best bid and offer (PBBO) midpoint, then follow the same-side quote and lose priority when discretion is used
• What missing, locked, and crossed quotes do to arriving and resting orders, including full cancellation when a Primary Pegged Reserve Order replenishes into a locked or crossed market