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

To: brec who wrote (6349)	1/8/2000 2:13:00 AM
From: LPS5	Read Replies (1) \| Respond to of 18137

In the very beginning, long long ago, SOES tickets were $60.00 each side and you had to stand behind an armpit high wall and call orders to registered inputters in a "different" room. Then, for awhile, you were only permitted 4 SOES trades per account, per day. Finally, there was the '5 minute rule,' which nearly every broker-dealer seemed to interpret differently. SOES has been through a large number of changes since it was made mandatory in 1987 following the crash. Despite these, however, the factors which (in my opinion) made it the least viable execution system include (a) the January 1997 Order Handling Rules and the subsequent phase in ("100 share pilot") of issues for which market makers were only obligated to be firm for 100 shares at a time, and (b) the advent of faster, more liquid/functional systems (ECN's and ATS's) which were ironically born of those same Order Handling Rules, under SEC 17a-23. I seem to recall that SOES began to really lost its' usefulness in the late winter and spring months ranging from 1997 to 1998, and that by summer 1998, most people were using SOES only in emergencies, and then rarely. If you're still fuzzy, check out the following either on the internet or at your local SEC regional office or NASD district office: SEC 21a (Order Handling Rules); SEC 11Ac1-1 (Firm Quote Rule); NASD 3310 (Publication Transactions/Quotations); NASD 3320 (Offers at Published Prices). LPS5

To: brec who wrote (6349)	1/8/2000 8:17:00 AM
From: Eric P	Read Replies (2) \| Respond to of 18137

brec: The following post has more information of the SOES system. Just as LPS5 and others have pointed out, the SOES system is now virtually worthless for entering an active stock, unless you want to get screwed. #reply-9980318 I've often considered a new trading strategy for high flying stocks. The plan would be to place a SOES market order for ~200 shares to buy a fast moving stock on the rise. The instant the order is filled, I would immediately reverse and short 1000+ shares through an ECN. This strategy is worth considering, since SOES market orders rarely get filled in fast moving stocks unless the stock is at the end of its swing and is ready to reverse. Good luck, -Eric