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Non-Tech : Market Makers - What They Do and How They Do It -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (371)	7/27/2000 8:02:01 PM
From: Savant	Respond to of 429

Keep those cards, letters and emails flowing to the SEC SEC Proposes New Rule To Expose MM Activity By Jack Burney Published by OTCNN.com 07/27/2000 07:25 AM CST All the letters and e-mails must have had an effect, because the Securities & Exchange Commission is proposing a new two-part rule that would virtually end Market Maker Manipulation. The rule would (1) Make brokers reveal which market maker they use to execute buy or sell orders for investors, and (2) Force market makers to post monthly reports that expose whether trades are being made at the best available price. Such a rule would subject any attempt at MM manipulation or excessive shorting to the light of public scrutiny, and, in effect, bring an end to the worst of the scourge that has suppressed stock prices, according to their stockholders, since March. The rule could go into effect before year's end. SEC officials were shocked at the unprecedented deluge of investor complaints that flooded the agency when it asked for comments of a series of vague proposals for rule changes. OTC News Network joined the movement, to report its progress and encourage reform, and hopefully, added to the deluge. To the surprise of investors who despaired that the SEC would ever act, the agency's regulators came up with a rule that strikes at the heart of MMM. It was vindication of a sort for investors whose complaints were ridiculed by some brokers and traders and paid bashers. The SEC said that in 85% of the trades made, investors do not get the best price. If a trade exceeds the best price by even the smallest increment of 6.25 cents an investor loses $62.50 on a 1,000-share trade. SEC said it ??suspects?? that some brokers may be selling their orders to MMs who pay them for the business, instead of routing them to centers where the best price can be obtained. SEC action follows the settlement of a class action lawsuit brought by investors against Charles Schwab, the largest online broker, for failing route buy and sell orders to market makers with the best price, and failing to disclose payments received for the placement of those orders. Investors agreed to drop the suit if Schwab would spend $20 million to educate investors and change the way it does business. ============ What the heck do they mean..'suspect'..sheesh. And if anyone thinks those two rules will end the manipulation....ha!