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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: double-plus-good who wrote (4625)	7/10/1999 6:04:00 AM
From: steve goldman	Read Replies (1) \| Respond to of 4969

Hi. Thanks for the note. First, I think it is unfair, but a market maker (different from OTC market makers - "specialists in options are called market makers on exchange floors...mm usually refers to OTC firms that act as principals, yet term applies to brokers on exchange floor that handle options".... If the market maker made a mistake, gave a wrong fill, it is something he can "break". I am not sure if the trade was broken or was just never done. He'd claim he never did it. He thought your order was a different series, etc, or he just blew it. Either way, you are only entitled to what was done. Since it never traded through your limit, ie..down to 3/8, 1/4, you cant claim you are deserved of a fill. As far as breaking a trade that was infact done, I am not sure of the circumstances under which that culd happen. I have NEVER heard of a client being able to break a trade as such. The REP at the firm, i think, blotched that. The market makers and contra firms can only break a trade that wasnt done or was executed in error, and when I say in error, i mean that it should not have been done and he meant another ticket. Also, I dont think it is up until settlement. The one experience in 5 years of heading our desk lead me to "understnd" that the market maker in the option had until 9am the following to morning to do so. After that, he eats it. Anyway, i know it doesnt give you any standing, but hopefully gives some clarification. Regards, Steve@yamner.com