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Non-Tech : CyBerCorp.com -- Ignore unavailable to you. Want to Upgrade?

To: Chris Steele who wrote (535)	4/19/2000 12:48:00 PM
From: WryBoy	Read Replies (1) \| Respond to of 1001

On the new SOES/Selectnet rules, now slated for June 5: CyberCorp probably won't have to do anything differently. The rule changes affect the way SOES and Selectnet orders are handled by Nasdaq, not by the broker. To be more specific: The new NNMS aka "SuperSOES" system will enable ECN's to participate in SOES. This means of course that ECN executions under SuperSOES would be subject to the 5 minute rule (yuck). Also, the SOES 17 refresh time is reduced to 5 seconds (good). As for Selectnet, it becomes a non-mandatory system for negotiating trades. This means MM's will not be subject to the 15 second "fill or move" constraint they now have. Also, I believe you must preference for at least 100 shares greater than the MM's displayed size, else the order is rejected. In that case, I assume Nasdaq will return the appropriate message back to the broker and, in turn, the trader. I don't see what Cyber will have to do differently as a result. Now, the decimalization of Island is another matter. I am hoping Cyber will enable us to take advantage of this announcement by offering us the ability to enter decimal orders (Island is going decimal in July). WB

To: Chris Steele who wrote (535)	4/19/2000 4:25:00 PM
From: brec	Read Replies (1) \| Respond to of 1001

There is a difference between the obligations of a MM who is buying order flow to the broker selling the order flow on one hand, and the obligations of a MM under NASDAQ rules to other market participants who communicate via SelectNet or SOES on the other hand. I think the original question (I thought the MM's had to execute a minimum of shares at the ask) may have confused these two roles. As you know, MMs who buy order flow generally contract to fill orders from the selling broker at the NASDAQ inside market up to a certain size (which may vary from stock to stock). In certain cases, as you have implied, having this service available can be an advantage. Direct access brokers such as Cyber do not provide it.