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Strategies & Market Trends : After Hours Trading(ECN)-The Coming 24/7 Trading Explosion
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To: Richard L. Williams who wrote (41)4/10/1999 7:06:00 AM
From: brec  Read Replies (4) of 314
 
The market makers did the buyers a service -- the buyers paid less due to the willingness of the MMs to sell short. The job of a MM or specialist or more generally, of speculators, is to reduce volatility by absorbing momentary spurts of supply or demand and then playing them back over a period of time (so to speak).

You're familiar with this particular market (HTSF) and I'm not; I don't know exactly what you mean by "blatant manipulation" but no one advocates fraudulent activity.

You ask, "If the MM's were replaced by a computer, then would this situation have come about? Or would the computer have set the bid at $10, attracting sellers, but no buyers?" I don't know what you mean by the computer setting a bid -- backed by whose money? If you mean a computerized MM, backed by cash, I withdraw the question (although such a program which set a bid of $10 in this particular case would run out of cash pretty quickly :)
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