How Swiss America Securities, Ltd. (SAS) trades principal and risk-less principal

Example: Symbol: XYZ    Bid $7.44   Ask $7.45

Client A places a limit order to buy 1000 shares of  XYZ at the ask price of $7.45 per share;

How a Marketable Limit Order is Handled:

  1. The SAS system will first check the SAS inventory account to see if there is a long position in XYZ
  2. if the SAS is long 1000 shares or more, the order will be filled from the SAS inventory account at the ask price of $7.45;
  3. if the SAS  inventory account has 1000 shares [or none]; it will fill the Client A’s order with whatever the SAS inventory account has, and if it can’t completely fill the order,  SAS will check;
  4. if there are other clients that have a sell order at the ask price of $7.45, then SAS will fill both orders up to the available shares; and
  5. if Client A’s order still remains unfilled, the remainder of the order; may be filled principal making the SAS inventory account         short or;
  6. SAS can trade XYZ risk-less principal which means SAS will buy XYZ shares in it’s inventory account and then sell them to Client A in order to fill the rest of its order.

All orders would be executed simultaneously.

Please note if the stock trades above your buy limit price you may only receive a partial fill or no fill.