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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: If only I'd held who wrote (53)	7/26/2000 9:56:06 PM
From: gene_the_mm	Read Replies (1) \| Respond to of 1426

REGARDING PREFERENCED ORDERS NOT BEING FILLED... If I had to guess I would say that you are preferencing MM's in stocks that are 'in motion'. If the stock is in motion than chances are there are other day traders and MM's out there trying to buy or sell at the same time as you. An MM has a very short period of time for him to move his market when he is preferenced for his displayed size or even greater. During this time it is not unlikely (especially in the high-flyers) that the MM might receive 10 to 15 preference orders ALL looking to buy or sell that same displayed size the MM is showing. Thus, while it appears that the MM is backing away the stock has probably 'traded away' from you. If there is not motion and no prints on the tape and an MM sits there or simply moves and does not print you then you are entitled to some recourse. Calling your broker and complaining about backing away SHOULD be enough for them to at least look into it. If they don't 'go to bat' for you then I would find another broker. It means that they are too busy or do not value their customers very much if they won't take the time to look into these problems. Regarding some MM's 'banning' ARCA, I do NOT accept this as an excuse. While I believe these ECN's are thieves in that they charge EVERY participant for orders that THEY are delivering (in other words, they are giving YOU the order and then saying "...and by the way that will be an extra $.015 per share please"), I have never heard of firms backing away from ARCA. I would guess that what is happening is that ARCA is billing the MM's for their order flow. If those MM's decide NOT to pay that bill, ARCA can actually put them on a 'bad user' list. I know this for fact with BTRD because there were times at an old firm I was at where we refused to pay their original bills and when we preferenced them in SELECTNET they sent back a message "BAD USER". Perhaps THAT is what is happening to you. Not sure, but if it is a well-known firm than it is doubtful that is what is happening. All the best, -- Gene P.S. Thanks to you and all the others for the kind words. I appreciate it.