Steve,
I was unavailable for the chat the other night, so appreciate your post here. I believe in your announcement you said you would be discussing the exchanges as well, and the DOT system. I actually think I understand NASDAQ better these days than I do the exchanges. I peeked in your library, and nothing jumped out at me as covering DOT. Can you direct me to a source of info?
I also have a few NASDAQ questions. You wrote
>>>In fairness to the market makers, who are taking risk in buying and selling out of inventory, the NASD permits the market maker, once they are executed against, to take a period of time to evaluate their position and to reenter and re-expose their firm to the SOES system. During this time, those investors/traders in the SOES cue must wait while the marketmaker first in line, evaluates and possibly reestablishes their position<<<
How long is the evaluation period (20 sec, I think), and what is happening/what do I see on my level II screen when the MM is deciding what to do? Suppose there are 5 MMs at the inside ask, and the top one gets executed. He can refresh immediately if he chooses and stay there, right? But if he takes his allotted time is he blocking SOES orders to the other MMs, does he move to the bottom of the inside market list if he waits and then decides to refresh at that price, or what??
You also wrote about ECNs
>>>Disadvantages
1. They are not SOES eligible, and as well, screw up cued SOES orders which have been entered. Ie. You put into sell 1000 abcd at the MARKET (market order). There is a cue, lets say you are fourth in line. MLCO is bidding and taking stock. Lets say an ECN goes to 10 1/16. Hey! That's great! You should get 10 1/16!. No, your SOES order is rejected and kicked out of the system because ECNS are not SOES eligible.<<<
This is changing some as of Monday to keep SOES orders in the queue.
nasdaqtrader.com
Dan |
