MOST discounters use one mm for otc and one for listed...they route everything, nondiscriminatorily to these firms. Many of these firms also handle large institutions. Program trades of size can slow any system, particularly an over burdened nasdaq system.
Recall, all trades go through market makers when you are dealing with NASDAQ stocks. So even if the cues, the nasdaq circuit is capable, if market makers are being sketchy with the firmness of their quotes, it doesnt help.
In the worst environment, you need to assess all your options and prioritize and then go after them in the order you, or our firm, as a trader, feels best meets those objectives.
Example...BAMM...had one client come in wanting to buy some at the market...offered at 27 15/16 by a MM, 200 shares...<G>> nice size...anyway, SNET'd them for the 200, but already had the REDI system ready to buy from few mm at 28 1/8 and 3/8, next two offer since I knew the 15/16 was garbage...turned out it was, but didnt get anything at 1/8 and ended up getting it at 3/8.
the 1/8 offer, while it was 15/16 was ISLD, so I Could have gone OUTSIDE the bid/ask spread and taken the 1/8 while it was there, but without client approval cannot do so. What if the stock fell right from there and never went upto an 1/8...?
That the stock went right to 31 in about 3 minutes, well that was a good 15 second trade in BAMM. about 3/8 higher than the offer coming in, but in a stock that jumps 4 points in 2 1/2 minutes , up and back, i thought it was decent.
regards,
Steve@yamner.com |
