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

To: Jon Tara who wrote (8298)	5/5/2000 11:53:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 18137

Jon, The rule should not be "trade or move". It should be "trade". The rule is trade: Trade for the size shown (under the firm price rule), and move if the MM is not willing to completely fill an order for at least 100 shares more than the size shown. The only legitimate reason for not filling to the size shown is the MM handling a prior order. The presumption is that if the MM has more shares s/he is willing to move at your price, and you have asked for more, then you are entitled to it. I'm not saying they follow the rule, just that they do have the obligation. Dan

To: Jon Tara who wrote (8298)	5/6/2000 12:47:00 AM
From: LPS5	Read Replies (1) \| Respond to of 18137

LOL. First of all, how do you know that the trader hasn't filled at such price and size over the phone, etc., and not reflected such in the montage? It could be printed up to 90 seconds afterwards, of course. No, the rule should be as it is: "trade or move." Posting a quote is an act which to a large extent reflects INTEREST, and which - unless hit with a liability-inducing order (SOES, certain limit orders and conditions that Dan mentioned, etc.) - does not, and should not, carry with it the obligation to automatically have to execute a trade without the ability to reject such or move ones' quote. LPS5

To: Jon Tara who wrote (8298)	5/6/2000 4:38:00 AM
From: brec	Respond to of 18137

The rule should not be "trade or move". It should be "trade". I believe the pre-market quotes of market makers, as distinguished from those posted during market hours, are not required to be firm. This, along with aggressive market-crossing pre-opening quote movements by firms such as Knight-Trimark (as discussed in a feature article in the WSJ that raised many eyebrows), led to the Trade-or-Move rule. Here's the text on a slide in NASDAQ's presentation on forthcoming changes (the URL for the presentation appears previously in this thread): How will Trade-or-Move work? * Effective between 9:20 and 9:30 a.m. * A locking or crossing Market Maker is obligated to send a Trade-or-Move SelectNet message for an aggregate of 5,000 shares to firms being locked or crossed. * A recipient of a Trade-or-Move message must either execute in full or move their quote to an unlocked position.