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

To: brec who wrote (7099)	3/4/2000 11:02:00 AM
From: Eric P	Read Replies (3) \| Respond to of 18137

How would NITE be able to identify individual customers? I believe all orders are sent to NITE with the branch sequence number of the individual account. I'm sure Knight's computer systems must be programmed to determine the individual profit/loss for the orders received from each account. All is well so long as the accounts all average out to be losers... However, if you get a larger than average number of smart traders placing orders with NITE, they will cut you off and not take your orders. This exact problem happened to me a month ago through one of the firms I trade with. My brokerage firm had a direct order entry relationship with NITE, whereby NITE would accept the orders into their autoexecution system. Most small orders (500 shares or less) would be instantly filled at the inside bid or ask. This made trading MUCH more easy, as this liquidity usually made it possible to get orders filled whenever needed. However, this trading dream world didn't last long. NITE realized that they were getting too many 'smart' orders, and pulled the plug on accepting orders from my trading firm... Now it's back to the good-old-fashioned ISLD, SNET and SOES trading. Good luck, -Eric

To: brec who wrote (7099)	3/4/2000 12:18:00 PM
From: LPS5	Respond to of 18137

They can't, unless it's an institutional customer with his own connection to them (acting like a hedge fund). The smallest breakdown of individual "identity" on the trading desk is MPID, which indicates the broker-dealer's 4 letter identity (or, for huge firms, there might be two or three, indicating their proprietary, agency, and portfolio/trust mgt. divisions). There's no way - it is impossible - for them to see "Mr. X"'s order, trading through a direct access or retail firm ABCD. LPS5