The NASDAQ has taken a lot of flack for the problems with its marketplace. It has tried to address them with SOES but that has been utilizedby day traders which is against the best of interests of those who run the NASDAQ, the Large firms.
They are proposing the Next Nasdaq, I believe, which willmean that when you enter an order in between, it instantly is reflected in the inside market whichis better than current manning rules which gives a market making firm upto30 seconds to work the order internally before having to display it. That really doesnt really address SOES but more selectnet.
Soes is tobe changed. To be honest, I havent seen materials from NASD in a few months, so I do not recall right now how it changes it, but I believe it impacts the mm's exposure to the market and time to update quote etc, min/max exposure.
I will check the bulletins when I get a moment, a refresh myself on the changes to soes, that are PROPOSED.
It probably will be a net advantage to those traading less volatile stocks where improving the market might help. For SOES traders, I think it sounded like a negative.
Remember, the NASD is run by larger firms. Look who chairs the exchange, etc. They don't like SOES.
Regards,
STeve@yamner.com |
