A:- PDQ’s auction restores the critical element of determining the market for each individual trade by creating an electronic algorithmic crowd competing for order flow, for a predetermined amount of time. When an order is received by PDQ’s auction model, the order is paused for a full 20 milliseconds, and in that time competing algorithms that comprise the “electronic crowd” respond with contra liquidity that is auctioned based on price – time priority to determine the true market for each trade.

A:- Liquidity Seeking firms are able to discover contra side liquidity and assemble block interest from multiple firms simultaneously by asking the electronic version of "What is the Market?". PDQ's algorithmic trading crowd will generate real competition for your order flow anonymously and confidentially. The pinging of multiple venues in search of liquidity is no longer needed.

A:- Liquidity Providing firms no longer have to anticipate order flow, but can now respond to order flow. This not only reduces trading risk and eliminates adverse selection, but also provides a higher probability of execution while making markets of larger size. Liquidity Providers will be credited a per share rebate for any contra liquidity generated by their resident algorithms and matched at PDQ.

A:- During the PDQ process, a liquidity seeking order arrives at PDQ where it is paused for 1-20 milliseconds and a Request for Trade ('RFT') notification is sent simultaneously to all interested algorithms resident at the PDQ facility. Liquidity Provider algorithms are now able to create (or spawn) contra liquidity. Because the Liquidity Provider algorithm makes its trading decision after receiving the RFT, the algorithm is able to respond with greater size and a potentially better price.

A:- Algorithms responding to order flow are hosted and operated at the PDQ facility. They are compiled binary libraries and confidential to the Liquidity Providers. These algorithms are updated by a unidirectional TCPIP connection. The algorithms can only receive data, there is no mechanism for them to transmit information back to a parent algorithm about Liquidity Seeking orders at PDQ.

A:- U.S. registered brokers dealers can become subscribers of PDQ as a Liquidity Provider, Liquidity Seeker or both. Descriptions of each subscriber type as well as required subscriber documentation can be found and/or downloaded at the following links:
Liquidity Provider
Liquidity Seeker
Non-broker dealers can access PDQ through a sponsored participant agreement with PDQ ATS and a valid Liquidity Provider or Liquidity Seeker Sponsoring Subscriber.