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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: LPS5 who wrote (8027)3/8/2000 7:57:00 PM
From: Wayners  Read Replies (1) of 12617
 
Well there's more than shorting naked. ECNs are not SOESable either. Two sided market is easy. I can be on both sides of the market and never have a trade executed all day long against me. All you have to do is cancel you quote and move it away from the inside bid or ask. MMs aren't going away as long as they can make money there from order flow. (They also make money from the liquidity function)---they may lose some little battles but they never lose in a panic. My biggest problem with selling order flow is it enables those that pay for order flow, i.e. market makers to get orders filled ahead of somebody that was first at the inside bid or ask. Should be first come first serve and not something you pay for. I would like to see more total volume at the ECNs--not just number of trades where I think ECNs lead. That would provide a good check/balance against potential MM collusion.
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