SOES Answers:
Here is how I understand the SOES system (as explained to me by NASDAQ and through my experiences)....
1. lets say you have 4 mm's on the offer at 5 1/4...5 x 5 1/4 quoted.
each mm is offering 1000 shares.
the first soes order goes to the first mm in line. that mm remains first in cue, with all orders going to him, UPTO his displayed quote.
2. Once that mm is filled upto his displayed quote, regardless of whether he has setup his terminal for a 'no-deck', the next orders go to the other market makers. Thus the mm can hang on the offer, yet if he only was displaying, offering, 1k and gets hit for 1k, whether he immediately adjusts his size back to 1000, whether he sets his terminal for nodeck, auto refresh, or whether he stays unexposed and simply wants to take the 'reasonable' time he is given to view his options, the order goes to the next.
If the mm has a display of 5000, then each order in succession will go to him until he fills his 5k or adjusts his quote.
Thats my understanding.
hope it helps.
Steve@yamner.com |
