SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Meet Gene, a NASDAQ Market Maker
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dan Duchardt who wrote (1275)12/5/2000 8:56:32 AM
From: Apakhabar  Read Replies (1) of 1426
 
Hi Dan,

I agree with much of your post (about how the MMs wish to marginalize the ECNs) although ECNs are not as transparent as you think: "what you see is what you get."

Most ECNs have the same reserve feature that MMs use so you might 200 offered on BRUT, for example, while 20,000 shares get sold at that price. Meanwhile Island has its hidden orders.

But mainly I question the usefulness of "transparency" to traders in general. I want the market to be deceptive. That is where a trader's skill can be worth something. If there weren't "secrets" in the market, where would the inefficiencies that traders need come from? Technical analysis is predicated on the very idea that stock prices respond to decisions made by people who know information not available to the public.

Contrary to the Etrade commercials ("What if there was a world with no secrets? Well, the stock market would be a better place.") greater transparency in the stock market would very likely mean less volatility and a worse environment for traders.

On a side issue....as for MMs "holding up" a price increase by only executing one SOES order every 17 seconds... isn't this is a non-issue for traders? If anything it gives traders a time-out for strategy. The MMs can't stop a real move anyway. You can SNET them for an order way larger than what they're showing and they have to fill or move within a reasonable time. Who is hurt by a MM filling SOES orders slowly and slowing down a spike? That's what I'd like to know.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News