Questions & Answers
Since the broker messages on AutEx have a relatively short shelf-life,
particularly on high volume days when turnover is high and the price changes
rapidly, brokers often re-enter the same indication to show that they remain
serious about buying (or selling) the stock. However, the fact that the
same broker is behind a series of interest messages does not necessarily
mean that demand for the stock is any more or less - this broker could be
slyly trying to fill a 1 million share order or the broker could advertising
the same 100K because he/she is not be getting the desired prices. Either
way, the demand is real.
It's usually safe to assume that the older indications are stale and not
active - so if it's 2:45 PM, a buy message entered at 10 AM is no longer
relevant.
On the flip-side, if there are multiple brokers active in the stock, all of
these brokers could be working orders for the same institution.
As for your question regarding the incentive for brokers to only enter
serious messages - the incentive is their reputation - which worth a heck of
a lot in the trading community. If word gets out that a broker has backed
off a super message or consistently does not honor interest messages, that
broker will see drop off in orders from the trading desks at the
institutional firms and will also have a tough time finding other brokers to
trade.
(BTW - Thomson Financial owns both Thomson Financial Interactive, the parent
of I-Watch, and AutEx Systems)
Rebecca Lennon
Senior Analyst
Thomson I-Watch
rlennon@thomsoninvest.net
www.thomsoninvest.net/iwatch/
-----Original Message-----
From: Nobody [mailto:nobody@betel.thomsoninvest.net]
Sent: Wednesday, June 09, 1999 10:57 AM
Subject: From IWatch
(wohanka) sent the following
------------------------------------------------------------
Name: wohanka
Comments: When one sees messages for 100,000 shares and then an hour or
two later for another 100,000 shares are these just repeat messages, sent
because the original interest did not result in a trade?
What keeps market players from painting a picture of interest by just
sending light interest messages, when they have no real interest in buying
or selling?
Thanks.
O.K. think we have beat this to death. Would still like to talk to an Autex user, even if it is indirectly, through my contact. But this is probably is as good as it gets in terms of understanding the system. Again thanks Slugger, thanks to those who raised questions, and thanks to anyone that will further hone our understanding in the future. For now I-Watch and Autex are something I will not ignore. |
