Orders through SelfWealth being filled through the Chi-X, page-5

Both Comsec and SWF send their 'at market' orders to Chi-x first, as long as there is a bid there, because its cheaper for them to do so.

However any 'limit' orders are sent to ASX as all Chi-X orders get purged at the end of the day and people will get upset about this because they will lose their place in the queue, whereas this doesn't happen with ASX orders (as long as the client specifies a long dated expiry).

Sending 'at market' orders to Chi-X disadvantages the general client population of these brokers no doubt. Say ABC stock was trading at $1 bid, $1.01 ask. Client 1 at SWF decides to put an a limit order to buy at $1, which SWF will send to the ASX as it is a limit order. Client 2 at SWF decides to sell 'at market' however this order gets sent to Chi-X first because it is cheaper. What happens is all the people in the queue at Chi-X get hit first, and after that gets used up the balance of the order gets sent to the ASX. Poor Client 1 is still left hanging in the queue at the ASX if Client 2's sell order is fully fulfilled at Chi-X. Wouldn't it be better if SWF fulfilled Client 2's sell with Client 1's buy before sending it to the market?

There is a broker, Virtu Financial that takes advantage of this greed from brokers such as SWF and Comsec. They deliberately have orders sitting in Chi-X and as soon as they get hit they get sent back onto the other side to scalp a cent/pip. Take notice of this for those who can see both ASX and Chi-X trades. They can do this because they know that SWF and Comsec send their Chi-X first and thus they will get hit first. It seems to be a lucrative business because they have been doing it for yonks.