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Non-Tech : Datek Brokerage $9.95 a trade
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To: nick nelson who wrote (12800)7/22/1999 8:31:00 PM
From: RockyBalboa  Read Replies (1) of 16892
 
It's a two-edged Sword. Maybe it has even more edges.

What does one prefer?

A single-tier system like NYSE/AMEX? While the NYSE is ok, I can't say that about the AMEX. However, I see that specialists are neutral and do not influence the prices.

A multi-levelled, clustered market like the nasdaq system? Many MMs pursuing their own (and sometimes clients) interest?

I'm tempted to deem the Nasdaq system to be more efficient because it can be more transparent by the market depth and the MMs working on a best efforts basis, also for their own portemonnaie. On listed exchange, an outside player can influence more, and there may be less possibility to monitor the moves of that outside driver.

THe ISLD is indeed feared as a tough competition to markets where individuals are locked out and are somewhat guided by MMs. OTOH the isld changes the Nasdaq character to something like an exchange. It's the order situation which makes it ridiculous sometimes (The often mentioned, "rumoured" fake bids, for example). All that may be true but noone can hinder a MM to participate as bidder on ISLD. Ulimately the parallel maket system should be more efficient than a single exchange.

How efficient it is is best seen on the aftermarket auctioning on ISLD.
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