Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chris Steele who wrote (8252)	5/5/2000 12:07:00 PM
From: LPS5	Read Replies (1) \| Respond to of 18137

Firms which offer correspondent access to an auto-execution mechanism via NASDAQ's ACES Pass-Thru system do so at their discretion. It is a privilege for customers based upon firms' relationships, not a right - and, as I mentioned, it is overwhelmingly geared toward odd lot orders. LPS5

To: Chris Steele who wrote (8252)	5/5/2000 5:22:00 PM
From: Dan Duchardt	Respond to of 18137

Chris, So why are these types of situations allowed? They do not create a fair and orderly market IMO. If the payment for orderflow MMers accept the order flow from one broker, IMO they should be required to have the same auto-ex setting for all of the brokers they accept orderflow. If fairness is the real issue, a case can be made for elimination of all auto-execution practices. When a MM auto-executes an order at a price that is "better" than his own quote, matching the better quote posted elsewhere, s/he is often in effect stepping in front of an existing limit order that just might be mine (or yours). The ultimate "fairness", in my opinion, is that the first to the table with a best quotes should be the first to get filled. But then, no-one said life, or the Nasdaq, was fair. An added observation about MMs regulating who they will auto-execute, and who they will not. My broker (Interactive Brokers) within the last few months had two separate arrangements with Herzog and Sherwood that included auto-execution. It was nice while it lasted, for not much more than a week in either case. I'd settle for even 100 shares if I could get it at my current fees. Dan