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To: gpowell who wrote (20488)	3/31/2000 4:00:00 PM
From: ahhaha	Respond to of 29970

The market orders are directed to the book unless the book gets picked up to an extent such that the spread is too large for the norm. At that point the MM may elect to supply the side. Before they can do that there must be a discontinuity hole so that their take only makes price continuous. Each fill becomes the fixed point for the order distribution.

To: gpowell who wrote (20488)	4/1/2000 1:24:00 PM
From: M. Frank Greiffenstein	Read Replies (1) \| Respond to of 29970

Nice graphic illustration of an order book, gpowell. But novice readers should understand this: The order book (defined as all limit & "fill or kill" orders) is not open. Any Naz dealer can only see one limit order at a time, the one closest the current best ask or bid. The graph may truly reflect the distribution in volume and price of all limit orders, but don't be misled into believing that such a distribution is viewable. SEC boss Levitt has asked Nasdaq and NYSE to open up the order books so everybody can see where the orders (e.g., landmines) are. DocStone