RPI Orders Can Keep API Traders From Reaching Retail Quotes
Photo: TokenPost
At one exchange, Retail Price Improvement (RPI) orders limit eligible traders and can make visible liquidity differ between website, app and API users. In the setup, the orders are post-only, rank behind regular orders at equal prices and can match only with non-API users trading on that exchange's website or app. The restriction limits the pool of potential counterparties, giving market makers fewer chances to trade than with a fully open quote. The design filters order flow by how it enters the venue. API orders, including automated arbitrage and high-frequency strategies, cannot execute against RPI quotes in that implementation.
Source: TokenPost
