Series 24: Time In Force (TIF) Designations

Time in Force (TIF) Designations

Similarly, orders having an attached time designation, such as Good-for-Day (GFD) and Immediate or Cancel (IOC), are familiar to all exchanges. Here are some additional TIF orders.

• • Minimum Quantity (MQ) Orders – Orders are entered for execution with a minimum share quantity. The minimum share quantity is filled on the first try or the order is cancelled.
• • Benchmark Orders – Orders are entered seeking to match the performance of a selected benchmark over a predetermined period of time.
• ◊ A Volume-Weighted Average Price (VWAP) is calculated over a given time period, and the order is filled at or below this average price. This is used for low-urgency trades of fairly liquid stocks.
• ◊ Alternatively, a Time-Weighted Average Price (TWAP) seeks to match a stock’s average price while executing trades at a constant rate over a specified time period.
• ◊ Percent of Volume (POV) trades try to minimize their impact on the market by weighting sales to the stock’s percentage of trading volume over a given time.
• • For Good ‘Til Cancelled Orders (either during system or market hours), the following limits may be applied:
• ◊ Do Not Increase Orders – if a stock split occurs, the order quantity will not be adjusted.
• ◊ Do Not Reduce&