Cap to NBBO (National Best Bid/Offer) range
IB SmartRouting always searches for the best price in the market. In addition, to provide protection for market and through-the-market limit orders while increasing the probability of an execution, a price capping range is created. Since SuperMontage and the NYSE both accept native market orders, market orders routed to these venues are not capped. Limit orders at or near the market will never be capped at a price inferior to the submitted limit order.

The capping rules are outlined below:

For stock price <=   $10.00 USD, increment NBBO by $.01 USD towards limit order but not beyond the limit order.
For stock price >= $150.00 USD, increment NBBO by $.05 USD, towards limit order but not beyond the limit order.
For stock price between $10.00 and $150.00 USD, interpolate from above rules.

Short orders for the exchanges and ECNs are automatically adjusted by the respective market center to comply with "short sale uptick" rules. Orders for SuperMontage  and Inet are adjusted up a tick by our order routing logic before submission.

Example 1: A buy limit order at $9.25 USD with NBO at $9.22 USD is price capped at $9.23 USD.

Example 2: A sell limit order at $152.25 USD with NBB at $152.35 USD is price capped at $152.30 USD.

Example 3: A buy limit order at $152.25 USD with NBB at $152.24 USD is price capped at $152.25 USD.

Example 4: A buy market order with NBB at $152.25 USD is price capped at $152.30 USD.

Simulated futures market orders are submitted at .3% better than the best bid or offer. If the order becomes non-marketable, the best bid or offer is recapped at .3%.