Orders That Receive A Charge And A Rebate:

Some orders may be charged for part of the execution and rebated for the rest. Orders that are routed to third parties for execution may not be filled completely. In these cases, Track ECN will retain the unexecuted portion of the order on its order book awaiting execution. The first part of the order will be charged at the rate of $0.003/share while the portion of the order left on the Track ECN order book will be rebated $0.0025/share if executed. Example #1: A stock is quoted at 10.50 x 10.60. Market Maker A is on the bid at 10.50 for 100 shares and Market Maker B is on the offer at 10.60 for 300 shares. A buy limit order for 400 shares is placed at 10.60. Track ECN routes 300 shares to Market Maker B. There are now 100 shares remaining unfilled of the original 400-share order. Those 100 shares will be represented as the new best bid when Market Maker B lifts his offer. The new quote might be 10.60 x 10.61, where Track ECN is on the bid at 10.60 for 100 shares and Market Maker C is on the offer at 10.61 for any number of shares. Subsequently, if the remaining 100 shares at 10.60 are executed, the total charge would be $0.65. (300 shares x $0.003 - 100 shares x $0.0025). Example #2: A stock is quoted at 10.50 x 10.60. Market Maker A is on the bid at 10.50 for 100 shares and Market Maker B is on the offer at 10.60 for 300 shares. A sell limit order for 400 shares is placed at 10.50. Track ECN routes 100 shares to Market Maker A. There are now 300 shares remaining unfilled of the original 400-share order. Those 300 shares will be represented as the new best offer when Market Maker A drops his bid. The new quote might be 10.49 x 10.50, where Track ECN is on the offer at 10.50 for 300 shares and Market Maker C is on the bid at 10.49 for any number of shares. Subsequently, if the remaining 300 shares at 10.50 are executed, the total rebate would be $0.45. (300 shares x $0.0025 - 100 shares x $0.003).