Alien,
Not to hammer Schwab, but if you analyze their position in the trade, there stance, or better yet, the stance of their market making subsidiary Schwab is 100% contra to your interests. Yet you do see improvements and let me make a few observations as to how you might be seeing those, since if you were the trader at Mash, you'd want every last teenie in your pocket.
(I dont know exact circumstance, but let me present how I see improvements when dealing with mm's where i wouldnt think i'd ever get them).
1. There could be a nondisplayed limit order on their books which they are obligated to match you against. This is called manning rules (see nasdr.com) website.
2. The stock could have ticked one way or the other thus the bid actually came up or offer down; its a violation to print outside the bid ask unless negotiated as such;
3. there is a 5% markup rule
In my experience, when I do an order against MASH or NITE or whomever and its to buy 10,000 ABCD at 10, the offer and they come back at 9 63/64 or 9 15/16, and I ask the trader how in the world they improved me (not how as in how is it possible, but why?) they usually say #1.
Not cutting into Schwab because they are a great firm for the right investor, but more explaining how that kind of improvement comes about.
Regards,
Steve@yamner.com |
