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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (41122)	7/18/1999 1:05:00 AM
From: tsunami	Read Replies (4) \| Respond to of 122087

You are not right Those bids are generally fake..they are strategically placed below the bid or at the bid. I don't care what kind of strategic implications the bids or offers placed on ECNs carry. They are automatically executable. There is no human intervention, if you want to hit an ECN bid or lift an ECN offer, you can do so without the originator of the bid or offer interfering. and then cancelled before being hit... The originator of the bid/offer can cancel their bid/offer before you execute against them but they have no way of knowing you are about to execute. Once your order hits the ECN, ECN executes without asking them if they indeed want to go ahead with the trade. ECNs do not have unfair market maker advantages like "let me fill you 100 shares and think about the rest for 17 seconds and fill you another 17 shares or move from the inside market." In other words if the market is 14 1/4 x 14 5/16 and there is an ECN bidding 14 with size 9900 (in that case it was INCA), you can hit that bid. It is a real bid. If you are long 9900 shares and you are sure that the market is about to fall apart and you are willing to hit that bid 1/4 below the inside market, you can do so. It is automatically executable. INCA ISLD REDI BRUT ARCA BTRD ATTN are ECNs and the bids and offers are automatically executable, period. As a matter of fact, most of my trades are outside the inside market with ECNs. For fast moving stocks ECNs are the market. Market maker bids/offers are meaningless. If you are saying that a market maker who needs to give the impression that the bid is firming up might try to bid size on one of the ECNs couple levels below the bid, he might do so but I think it is very stupid as if the market is about to fall apart, he might get immediate execution and end up owning shares that he doesn't want. regards, t

To: Anthony@Pacific who wrote (41122)	7/18/1999 7:33:00 AM
From: HairBall	Read Replies (1) \| Respond to of 122087

Anthony@Pacific: Those bids are generally fake they are strategically placed below the bid or at the bid and then cancelled before being hit I have noticed this a lot over the last few months. It is without a doubt Level II Manipulation. And has made using Level II to gage buying and or selling pressure/support more difficult...and less reliable. It seems this is not only being done my Market Makers but a lot of the phantom bids or asks come from ISLD. This is in your face manipulation...and is another large example that NASDAQ is not capable of policing itself. Of course, the NASDAQ is not the only exchange where manipulation is a everyday occurrence. Regards, LG