SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Final Frontier - Online Remote Trading
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dan Duchardt who wrote (7041)4/26/1999 7:11:00 AM
From: Eric P  Read Replies (2) of 12617
 
Regarding the new SEC proposal...

Obviously, I agree that SOES and SNET are basically useless now. However, I think that only one simple change is needed to make the market 'fair' again. => Eliminate the 17 second wait that market makers are currently allowed before updating their quote.

If this simple change were implemented, all quotes in the marketplace could be considered 'real'. Currently, in active stocks, you can virtually ignore the market makers and strictly focus on the ECNs. The market makers simply clutter up the market in the stock by posting prices which they have no intention of filling. Market makers currently have the ability to halt the sharp upward movement of a stock by posting an ask for 100 shares at the inside ask and not moving it away. They can maintain this quote by filling measly 100 shares every 17 seconds. This is ridiculous.

Needless to say, the stock will quickly ignore the market makers quote and trade at a much higher price against the available ECNs. However, this disrupts the market in the stock and should be eliminated.

Long, long ago, market makers would post and update their quotes manually. => This would make an update delay necessary for the market maker to make a decision. But times change. Currently, virtually all market maker quotes are adjusted automatically by computer. The computer does not need 17 seconds to think and decide what to do. The delay requirement should be entirely eliminated, or reduced to one second.

Just my opinion,
-Eric
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News