Take the 2-minute tour ×  I was reading a BMO paper which
offered the following example of passive rebate arbitrage:  "For
example, if BBD.b is trading at $4.71 - $4.72 with multiple
players on each side, one might place a 'passive' order on TSX
to buy 5000 shares at $4.71 Upon receiving a fill, then proceed
to place a 'passive' offering on another marketplace that does
not have a bid at $4.71, thus locking the market:  Bid
Offer TSX 5,000 $4.71           $4.71 5,000 Pure TSX 10,000
$4.70          $4.72 15,0000 TSX  Counting on one of the bidders
on the TSX to move their order to Pure and buying their stock.
This achieves buying and selling at 4.71 and collecting passive
rebates.  If I understand correctly this would only work without
Reg NMS? So you place a passive bid in TSX, lets say. And then
as you get filled, you place a corresponding best offer at the
same price level in a different exchange. This locks the market
and without Reg NMS in place you could be getting filled in both