Price-broker-time priority
Quick definition
Price-broker-time priority is a matching algorithm where orders from the same broker are prioritized—allowing them to trade with each other ahead of other participants, even if the broker’s order arrived later in the queue. This is often referred to as broker preferencing or broker priority.
What is price-broker-time priority?
The main purpose of price-broker-time priority is to let brokers match their clients' orders against their own internal flow before interacting with the broader market. In effect, it enables internalization within an exchange or trading venue, giving brokers similar benefits to executing off-market, but within a centralized order book.
Price-broker-time priority is most prominent on Canadian trading venues, including TMX-operated markets like TSX, TSXV, and TSXA, as well as Nasdaq Canada’s CXC, CX2, and CXD books.
Price-broker-time priority is also sometimes written as price/broker/time priority.
References
New users get $125 in free credits
Free credit applies to all of our historical data and subscription plans.
