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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Dan Duchardt who wrote (7086)3/3/2000 5:54:00 AM
From: Eric P  Read Replies (1) of 18137
 
Dan:

I agree with your entire post. It 'seems' like the fragmentation question is an easy one to answer. Simply make the markets fast and efficient for everyone, in other words, fair. Best posted limit order price on the book gets filled first. Multiple limit orders at the same price => First come, first filled.

Seems like a no brainer. But I suppose I'm oversimplifying. This kind of proposal, while fair, will turn the Nasdaq market upside down by eliminating ECN's and eliminating the current capacity and advantages held by market makers. This gives many, many deep pocketed people a vested interest in killing the proposal. Therefore, I'm not optimistic...

-Eric
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