In the US OTC stock market, do customer orders have higher priority than market makers' orders? For example, a market maker is bidding on stock S at $10 for 100 shares. Assume that this is the highest bid, and that the quotes do not change. A few moments later, I similarly place a bid on stock S at $10 for 100 shares. Does my order have priority over the market maker's order?

From my understanding, customer orders at the NYSE have priority over the specialists' orders. I am wondering if this is the same for other markets such as the US OTC stock market.

(By "OTC stock market", I mean the market for stocks that are not listed on a stock exchange. For example, the OTC Pink market (pink sheets)).

  • 1
    This is very exchange/OTC dependent. NYSE is much more complex than a simple priority queue for customers putting in new best offer bids (see: nyse.com/article/parity-priority-explainer). You would need to name the exact exchange in question to get more details as the question as stated is very broad/unanswerable.
    – Philip
    Apr 14, 2021 at 11:49
  • 1
    Perhaps my mistake is in thinking of the US OTC stock market as a single stock exchange.
    – Flux
    Apr 14, 2021 at 12:03
  • One reason customer orders might get priority is to prevent/reduce "front-running", but I don't know how this is enforced.
    – RiverNet
    Apr 16, 2021 at 4:01


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