Citi's LavaFlow ECN has announced a new Hide to Comply order type.
This new order type that allows liquidity providers to enter displayable limit orders at aggressive prices and get the best time priority at the order's posted level while receiving a rebate.
Hide to Comply adjusts aggressively priced orders so they are hidden on entry and their limit price set to the opposite of the NBBO. While orders are hidden at this price they are eligible for a full rebate.
When the NBBO updates so the order is no longer at a locking price, the order will be displayed at this new limit, maintaining its original time priority.
Shane Swanson, Head of Transaction Services at Lava, said in a statement, "Citi's LavaFlow ECN is continually creating advanced functionality and Hide to Comply is the latest example of our commitment to enhancing the product to meet the best price and execution needs of our customers. Hide to Comply, along with other features we have launched this year, is one of the many ways we provide industry leading functionality to the trading community."