Gary,
Sorry that you feel like you are posting in the middle of a fight. It seems to be something that happens every so often between DOn and someone.
First off, if you are interested in some basics on soes, you need to understand the nasdaq marketplace, so that this particular execution system, Small ORder Execution System, has meaning in context. Take a look at our website...http://www.yamner.com....go to yamner univsersity and take a look at the Yamner Library...look for the docs on nasdaq marketplace, execution systems and then look at the Document downloads...they give you level2 exposure.
Basically speaking, soes is an execution system that was developed after the crash of 87 when small investors could not get intouch with broekrs and brokers couldnt get intouch with other brokers. it wasn't because there was too much business butbecause noone wanted to do any business, especially when 90% of the pressure was on the sell side. After all, buying GE at 34 even though it was 40 the night before doesnt help if the stock is 31 ten minutes later.
The SOES system provided an electornic, immediate system whereby market makers in OTC stocks had to electronicallyu post their quotes on stocks and be electronically, firmly , committed to them. Thus if you are my customer, you call to tellme to sell xyvs stock, I can electroncially hit a button and FORCE the shares onto a market maker in seconds. remember, the market isn't made up out of thin air. There must be buyer of the shares you are selling. The older system required you to pick up the phone and hit the bid. The buyer might lie and say they weren't ther or simply not pick up the phone anyway.
There are several advantages and disadvantages to the SOES system. There are limitations as well regarding the sizeof the trade, time between traders, etc. See the www.yamner.com yamner univ docs.
ISLD (the island) is an ECN electronic communications network. It is sort of a maarket maker in otc stocks but really is simply displaying the best customer order in the stock. It is infact NOT SOES ELIGIBLE. You can not SOES to a ECN but you can preference them on snet. selectnet.
Hope it helps a bit. Check out nasdaqtrader.com...atleast I thinks its nasdaqtrader.com (ask Irby, he knows all the URLS,).
regards
steve@yamner.com |
