ECN Bogus Bids and offers, Manipulation BY MMs Message Board

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Non-Tech : ECN Bogus Bids and offers, Manipulation BY MMs

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To: Rande Is who wrote (4)	7/20/1999 8:10:00 PM
From: Eric P	Read Replies (1) of 112

I'll be staking out REDI on OSFT offer on Monday. . . . 25k was showing all day on Friday in a stock that traded 36 times its 30-day average and nearly it's entire float, while the price barely moved. . . closing where it opened. . . .yet, I didn't see a single 25k trade all day in the logs. . .and less than a dozen 20k trades. . . .REDI appeared to control the trading from open to close. . . .and many experienced traders agreed that the offers looked phantom and the trading appeared to be manipulated. Anthony/Rande Is: Perhaps I'm missing the point. I'm an individual trader and certainly have never been a defender of market makers, but I'm confused by the purpose of this thread. The way I see it, the ECNs are the good guys. When REDI or ISLD or ARCA shows a bid for 10k shares (or 25k or 50k+), you can be certain that they are going to fill your order if you want to trade with them. Their intent to possibly influence the market with the quote is irrelevant to me. The fact is that they are taking a risk that their order will be filled, and their order is in the custody of an unbiased referee, i.e. the ECN. Their orders also provide additional liquidity in the stock as an added benefit. The next time someone notices a 'fake' ECN offer of 25k shares designed to drive down the stock price, simply execute against it and teach them a lesson. <g> I've got no problem with legitimate executable orders. I wish the entire marketplace was restricted to only ECN orders. The following post shows my thought about ECN's versus Market makers: #reply-10248086. Good luck, -Eric P.S. I would appreciate having an explanation of how a legitimate 25k share ECN order would violate any SEC rule. It certainly isn't a violation when the MMs post quote sizes of only 100 shares when they really have 100,000 to sell. Edit: Reading further, it sounds like others also question whether this is a violation: #reply-10557449 #reply-10559570

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