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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (3621)	6/29/1999 4:58:00 PM
From: Marc	Read Replies (2) \| Respond to of 5927

MAkes you wonder if the specialist in ATY was on vacation today since the volume was so low lately, and he was replace by some clown :-) What is the role of a Registered Trader? The Registered Trader assigned to your stock maintains a fair, orderly and continuous two-sided market. Your Registered Trader helps to reduce volatility and enhance liquidity by buying (or selling) against the market. Investors are assured of fair pricing, thanks to the Registered Trader's commitment to trade all orders of a certain size ("minimum guaranteed fill") within a set "spread goal" (the price difference between buy and sell orders). The minimum guaranteed fill and spread goal vary by security, depending on issuer size, public float and trading activity. Who are Registered Traders? Registered Traders are experienced traders who have a thorough knowledge of TSE rules and regulations. To qualify, a Registered Trader must have a solid track record and sound reputation. Your Registered Trader is employed by a TSE member brokerage firm, but has individual responsibility for your securities. Member firms commit sizable amounts of capital to enable Registered Traders to provide liquidity by trading stock in their own accounts. How is a Registered Trader assigned to a stock? Once an issuer is conditionally approved for listing, the TSE invites all Registered Traders to apply for the security assignment. Each interested Registered Trader formally applies to the TSE's allocation committee. The most appropriate applicant is selected, based on performance rating, service levels, experience, current responsibilities and capital. How many securities does a Registered Trader look after? Typically, a Registered Trader has eight stocks of responsibility. Each Registered Trader has a designated back-up. How is a Registered Trader's performance rated? Registered Trader responsibilities and standards of conduct are defined clearly by TSE rules. Market Surveillance computer systems monitor average trade-weighted spread goals, size guarantees, price and depth continuity. Registered Traders receive quarterly performance reviews from the TSE. If the TSE detects substandard performance, the TSE can reassign a Registered Trader's securities. What benefits do Registered Traders provide the TSE's market? Enhanced Liquidity On some markets, the quotation on a thinly traded security can be "no bid - no ask". On the TSE, Registered Traders are responsible for ensuring a reasonable quoted market for all listed stocks. In the absence of counterparty, the Registered Trader will post a bid (or ask) quotation that will trade against their own account, if an order at the market is entered. Prices posted by the Registered Trader must relate to the last trade price and the bid-ask spread must be fair. Better Prices Tighter spreads mean better prices for investors. Your Registered Trader is obliged to keep the bid-ask spread on your stock within a certain reasonable range ("spread goal"). When the market lacks reasonably-priced orders, the Registered Trader enters a buy or sell order for his or her own account at a price that narrows the price spread. Less Volatility Smaller price changes between trades mean lower volatility. Registered Traders help offset temporary imbalances between supply and demand by buying (or selling) stock for their own accounts. TSE rules require 70 percent of a Registered Trader's trading to be "against the market". For example, if the market in a stock is going down, the Registered Trader should buy stock at a higher price than the last trade. In this way, prices are stabilized and price movements are moderated. Guarantees for retail investors Registered Traders guarantee the best bid and ask prices for small market orders. When there are no public orders to buy (or sell), the order is automatically filled against the Registered Trader's account. The Registered Trader's willingness to commit capital means greater liquidity and faster "fills". Registered Traders buy or sell odd lots (orders less than a board lot) at the same price as board lots which ensures investors an immediate "fill" at the market price. Monitoring stock price and trading Throughout the day, your Registered Trader monitors trading in your securities closely and is well-equipped to answer questions on trading affecting your stock. Registered Traders also help Market Surveillance spot trading anomalies and unusual price changes.