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Non-Tech : ECN Bogus Bids and offers, Manipulation BY MMs -- Ignore unavailable to you. Want to Upgrade?

To: johnsto1 who wrote (69)	7/22/1999 8:55:00 AM
From: LPS5	Read Replies (1) \| Respond to of 112

There are analytical tools (one is called "The Hammer," another the "AxeGrinder," by various software/trading companies) which can tell you what market makers have been a) at the inside bid, b) at the inside offer, c) close (within a level or two of the inside offer or ask), "hanging back," so to speak, AND d) the number of times they've been at each. While this isn't 100% conclusive, it usually lets one narrow the choices for who the axe(s) is or are (I've never heard of a/the "hatchet") to two or three. In addition, if you piece this together with investment banking news, in particular who might've been one of the managing/lead underwriters in the issues' underwriting, you can narrow it down or pinpoint the real axe(s) with a relative degree of certainty. LPS5

To: johnsto1 who wrote (69)	7/23/1999 8:46:00 PM
From: pressboxjr	Read Replies (2) \| Respond to of 112

johnsto1, if I may. You can tell who the "hatchet" or "axe" is very easily. For instance, when you are watching Level 2, have you ever seen 1 certain market maker that will just not get off of the ask or bid? Sure, you've sat there and said, "jeez!, how many more buys before this guy moves?", or "jeez!, how many more sells before this guy moves?. That would be your "hatchet" or "axe". Funny, but I was watching TCTY today and as it dropped to $12.00, market maker LEHM (lead underwriter) was the only one on the bid side and I swear I must have seen about 50K worth of sells (and his bid size showing 100 or 200). He didn't budge. Obviously, other traders realized this and more and more stepped on the bid to get in front of him. Bottom line, don't screw with the "Axe", they win every time. That is, until Anthony gets through with them. :-) Hope that helps. JR