Any info about Iomega (IOM)? Message Board

STOCKTALK

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 : Any info about Iomega (IOM)?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Andy Chen who wrote (10381)	10/29/1996 1:28:00 AM
From: slipnsip	of 58324

The beauty of SOES trading is Nasdaq small order electronic execution system. 1000 shr orders or smaller are traded electronically. S for small O for order E for electronic S for system. Business is done two ways with a MM. First is over the phone typically 1000 shrs or more. Second is electronically via small order electronic execution 1000 shrs or less. SOES trading comes into play with the second option. Originally the idea was to give the small guy a fair chance at getting executions ahead of the big guy or institutions trading thousands upon thousands of shares.. With this came the dreaded (if you are a MM) electric buy/sell button that SOES traders use.. As fast as they can push the botton, they can buy in thousand share lots from a MM. The SOES trader decides its time to buy/sell, maybe some MM not paying attention to his market in a particular stock i.e. let bid/askhis stay well above/below other MM's levels and sells/buys 50,000 shares in thousand share lots by pushing his button 50 times. Realistically these guys band together with several buttons and hammer the poor MM and leave him extremely long or short which he maybe never intended to be. As the arguement goes, this adds to the volatility (bad from MM view point, makes it harder to make money on the spread) which is bad or good depending on how you look at it. The bottom line is that things are happening (SOES trading) that were never intended when Nadaq put in place the electronic order execution for "the small investor".. How does it hurt the little guy??? Most little guys don't like to see wild swings in the price. Otherwise I don't know other than the system is being used in ways unintended therefore MM's and firms cry foul! I suppose it hurts the little guy on the whole liquidity standpoint. If it gets to difficult for firms to make money buy MMaking, they will stop. This would in theory make the spreads bigger and make it more expensive to trade as MM's try to protect their interests.... When I say "crossed market" I am using it as the actual definition as used within the industry. Crossing trades is a whole different topic..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next