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About 40 minutes ago, I posted a buy order of IE00B4L5YC18 at 31.12 EUR/share to Scalable Capital for execution at Gettex. The sell price has been fluctuating a bit since but as of the writing of this question is at 31.107 EUR/share (taken from gettex.de). Shouldn't it be at at least 31.12 EUR/share because anyone who wants to sell could sell to me at 31.12 EUR/share?

I've had the feeling that Scalable Capital doesn't post my orders to exchanges before, and it even happened with Comdirect and the Stuttgart stock exchange. But whenever I posted an order to the Frankfurt stock exchange via Comdirect, it showed up after a few minutes if it hadn't already been executed by that time.

With Scalable Capital and Gettex I've even made the experience that days after I had posted my offer, executed trades were showing up on gettex.de with worse prices than what I offered.

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Depends. When routing your order through pools first (e.g. you broker does PFOF, https://www.investopedia.com/terms/p/paymentoforderflow.asp) the Order would indeed not show up on the exchange. However, "best execution" principle has usually to be followed, which would still mean, that it would eventually reach the "best" exchange, if not filled by a marked-maker or in some dark-pool. (Best does often mean "cheapest" but not always). However, since your stated price is: 31.107 EUR/share I would check first:

  • Is this price just indicative? (e.g. no trades currently, market not openend etc.)
  • Are you not missing the ETF's spread? (since your price has 3 digits, and when I check online, the ETF is traded with two digits.)

Gettex is a Market-Maker system, which is highly likely to be a quote-driven market, and no order-driven-market (https://de.wikipedia.org/wiki/Gettex) This is common for exchanges which offer structured products. If there is a quote, the market-maker has some small time-frame available, to recalculate his price, and enter a trade or not. This is convenient for the market-makers, but can be frustrating to other participants, if their orders are not filled as indicated. I also experienced this once, but it isn't common, since Market-Makers usually need to guarantee a defined spread, and availability.

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  • 'Best does often mean "cheapest" but not always' What else can it mean?
    – UTF-8
    Jan 19 at 19:56
  • 'no trades currently, market not openend etc.' The market was open yesterday but Gettex lists no trades that happened at prices permitted by my order. However, in the past I did see trades listed that happened at conditions where my order should have been partially executed. I never witnessed an individual trade that happened at a volume equal to or exceeding my volume at a price permitted by my offer. However, Scalable Capital states in their FAQ that partial execution happens whenever possible. Therefore, at least part of my orders should've been executed in those cases.
    – UTF-8
    Jan 19 at 19:57
  • 'Are you not missing the ETF's spread?' I was talking about the sell price. The buy price was much higher. I.e. yesterday (and also today with the higher price today), it was legitimate that my order has not been executed. But I'm confused as to why my order does not influence the sell price when I'm willing to buy for a price that's higher than the current sell price. 'since your price has 3 digits' Isn't the precision dictated by the exchange? In Scalable Capital I too can only enter the price with a precision of 2 digits but Gettex shows it with 3 digits.
    – UTF-8
    Jan 19 at 20:01
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    For your Order Sizes it will mean cheapest, but there are others, such as: " price, costs, speed, likelihood of execution and settlement, size and nature of the order or any other consideration relevant to the execution of the order" esma.europa.eu/sites/default/files/library/2015/11/08_735.pdf
    – Marco
    Jan 20 at 19:18
  • You are right, the digits are dictated by the exchange, and I do in fact own ETF's, which are traded to more than 2 digits accuracy. But I didn't check yours.
    – Marco
    Jan 20 at 19:20

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