Steve, thanks for your input. However, to get more focused on the essence of my question, regarding the informational aspect of level 3, vs level 2 vs Instinet. It appears to me that both you and David Hurbanis have indicated, that L-3 is not any better informational tool than the L-2. As David said that it is merely providing an editing capability to the L2.
However, since I have not used, let alone seen the L3 screen, I conceptualized it more like a Watcher screen, where, I could see all the B/A edits which have not been "hit" yet.
It was only in that context I beleive, it could be of more help to an intra day trader like me.
But, if L3 looks exactly like L-2, with merely an addditional button for editing L-2 data, than it is totally useless. IMO it was more than that.
If only I could have seen an L-3 screen , a lot of this misunderstanding would not have arisen.
On instinet, vs level 2, again the jist of my question is
1) Are the level 2 B/A quotes we see, only for SOES markets.
2) Are these quotes different in the Select NET market, if yes, what database/system shows those quotes. That is if GSCO is on the inside bid on level 2, at price x, then this is GSCO's committment for SOES 1000 shares, subject further to the 15 sec rule. In the general market, GSCO might have a different quote , price y, for a higher block of shares.
3) Do mutual funds/pension funds (not MM's) have their own quotation system, and their B/A's are different from Select Net (ie. Instinet) or are they the same.
4) If we see an Instinet screen, would we see individual institutions listed with their B/A or would it show the MM's.
We use at the trading firm I trade in a tool called a Market spotter, which shows a diff between a book B/A ( INst) vs the Retail B/A, ie select net, which has prompted me to get a better understanding for these market differences, especially the way I have seen the change in patterns of price movement in the those markets..
Looking Forward. |
