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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Matthew L. Jones who wrote (5206)	11/5/1999 1:55:00 PM
From: John Koligman	Respond to of 18137

Hi Matthew, If I'm understanding things correctly, the article says orders can arrive via Superdot, but they still get executed 'the old fashioned way' <gggg>. Regards, John "The Big Board began automating the delivery of orders in the 1970s with its DOT system (now called SuperDOT), and today about 90% of orders representing about half of its volume travel over SuperDOT. But all orders, upon arriving at the floor, must still be executed manually by a specialist, after floor brokers have had a chance to bid on the order. (The exception is "odd lots": Orders of fewer than 100 shares are automatically executed.) Sometimes the investor gets a better price as a result; for example, when a broker pays him $100.125 for his shares when the highest bid at the time was $100."

To: Matthew L. Jones who wrote (5206)	11/5/1999 6:09:00 PM
From: Eric P	Read Replies (1) \| Respond to of 18137

SuperDOT is a method to get NYSE orders to the floor of the exchange (i.e. to the specialist) quickly. Once the specialist has the order, he manually must put the order on his electronic order book, or if marketable, match it against an existing order to execute the order. Virtually all small orders are handled this way. Large orders, by contrast, are called down to the brokerage firms floor broker. The floor broker then walks over to the IBM post, for example, and discusses the status of the stock with the specialist in an attempt to get the best price. Floor broker: "Hey Bob, what's the market in IBM?" Specialist: "90 1/8 bid, 1/4 offered, with a size of 5000 by 20,000." Floor broker: "At what price can I get 50,000 (shares)?" Specialist: "I can get you 20,000 at 1/4, 20,000 at 3/8, and the last 10,000 at 1/2" Floor broker: "Sold" => This way, the floor broker is better able to work the order for his customer by understanding the depth in the stock and find the best way to execute the size of the order. Have a great weekend, -Eric