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To: E. Davies who wrote (16903)	11/10/1999 10:15:00 PM
From: MIKE REDDERT	Respond to of 29970

<He's just messin' with your head... Nobody colludes to manipulate the market. My opinion is they simply do it without conciously realizing they are.> Collude : To act together through a secret understanding MM's don't sit down over tea and decide where to place bids. This would be both illegal and contrary to their own best interests. After all, why would a MM want someone else competing with them to buy or sell at an identical price. But MM's do have a "SECRET UNDERSTANDING" of un-booked level 3 supply and demand. Why is it secret ? ... because they are the only party that is privy to these quotes. You and I cannot get them. When MM's see heavy supply on L3, they "ACT TOGETHER" in typical crowd behavior and lower their bids. Their credo is to buy lower and sell higher, and they know that their companions will do the same. And they don't need to chat with one another to know this. So you see, Ah was not "messin' with your head" and the point can be made that MM's legally collude to move prices throughout the day... and, they know exactly what they are doing, or they wouldn't be employed in that capacity. Mike