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To: eichler who wrote (56408)	7/11/2000 2:21:00 PM
From: Saulamanca	Read Replies (1) \| Respond to of 99985

Eichler, Here is a good place to start: Message 13755175 --Jim

To: eichler who wrote (56408)	7/11/2000 2:24:46 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

eichler: Below you will find a few post by a former Market Maker. One that is not shy about talking about the manipulation that goes on. You will find a few about "spoofing" as well. Spoofing, what a nice little word for manipulation... A few post by Anthony@Pacific, a former Market Maker... Message 12595496 Message 12667136 Message 12982291 spoofing Message 13231779 Message 13236715 manipulations does not just occur in penny stocks Message 13604604 SI used to manipulate a stock…naaawwww Message 13689687 NASDAQ rule changes Message 12584849 NASDAQ 100 share rule Message 12585067 NASDAQ rules change again to favor MMs Message 12881955 new services own ECNs Message 13055001 upgrade/downgrade manipulation Message 13055029 let’s sue Message 13225336 more about spoofing Message 13236703 Ripping off the little guy, one trade at a time Message 13359813 I was often opposed to Anthony’s manner prior to his suspension. However, after his return to SI his manner improved a lot. Whatever one thinks of him, one has to admit he brought a wealth of information to SI and he was never bashful about pointing out the fraud and manipulation that goes on behind the scenes. He knows, he has been there! Regards, LG

To: eichler who wrote (56408)	7/12/2000 1:45:11 PM
From: eichler	Respond to of 99985

To The Thread: Just wanted to pass on the following message I received via PM from Jon Tara regarding my question yesterday about "order preferencing". I found the reply well thought out and I believe it has increased my awareness of aspects of trading. I thought perhaps others might benefit. I haven't figured out yet how to transfer content from one message to say this message so I have to type out the reply....sorry for any typos. It begins... Yes, this sounds like order preferencing. I've done it myself on rare occasion. If you are using a direct-access broker, you can place trades using SelectNet. SelectNet allows you to "preference" a market-maker. That is, you can direct your trade to a specific market-maker. This allows you to buy above the offer. Now, why on earth would you want to buy above the offer. I've done it, should I be committed?:) In a fast moving stock, it is difficult to get in at the offer. You are thrown-in to a "queue". Everybody who has placed an order in front of you will be filled first. If you placed a limit order, the price may tick up before you can be filled. If you placed a market order, you may pay much more than you wanted to. Instead, it is better to preference a MM or ECN that is offering at a HIGHER price. By doing so, you bypass the queue. Let's say a stock is 50 x 50 1/8 and moving fast. You may get stock cheaper by buying from a MM offering at 50 1/4 than by placing a market order, and not getting filled until 50 1/2. If the ask that is sitting there is from a MM, then, yes, they have some rules that will allow then to delay slightly - they only have to do a SOES fill every (15?) seconds, and they have no obligation to honor Selectnet orders. But eventually they will be taken out. Another thing that you might be seeing (or perhaps in combination with the above) is that you may be seeing quote lag. L1 and L2 quotes are on separate feeds from NASDAQ. L1 quotes often lag. The quote you are seeing from the Island book are QUITE up-to-date, and they often lead even the NASDAQ L2 feed. (In Fact, technically, they HAVE to - you are seeing the same quotes that they are providing to NASDAQ. NASDAQ then has to send them back out...)I wouldn't trust the free quotes on SI to be very up-to-date - I'd presume a lag of 1-5 seconds at least. __________________________________________ Anyway, this explanation makes sense to me and sounds feasible. Sorry for the redundancy for those who already know all about this. I'm still a computer newbie (finally joined this technological revolution by getting my first computer in January...better late that never!?) Best wishes for succesful trading to all! Eichler