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To: Joseph Silent who wrote (2395)7/15/1999 11:53:00 AM
From: GS_Wall Street  Respond to of 10027
 
Joseph,

The traditional MM number one function is to serve their clients and generate commissions for the firm. Buy having access to the order flow they are able to using trading techniques to get better fills, they can also trade along side their customers for there own advantage. At certain times in the day even in large stocks a few thousand shares can move the stock an 1/8 point. Contrary to popular belief they do not trade in-front of their best customers. These customers provide the order flow that allow the MM to generate the strategies that let the MM make money, therefore it becomes a win win for both sides.