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.

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

To: Gary Wisdom who wrote (117)	7/29/2000 10:48:15 PM
From: gene_the_mm	Read Replies (1) \| Respond to of 1426

REGARDING MM PARTICIPATION WITH LIVE BIDS/OFFERS... Gary, I am afraid you will have to elaborate your question for me. Are you saying the MM's do not have a quote on Level 2 or are you asking why they have a very wide spread, sometimes ALL day? Currently, the rules allow MM's to have wide spreads on stocks so that, in essence, they can particpate at will. Part of the reason for this is that the NASD is still debating the pros and cons of having what used to be known as 'primary market making' status. One of the reasons that this status no longer exists is that ECN's are exempt from this status, and can enter and exit stocks WITHOUT having a two-sided market or any 'risk' of maintaining a tight spread. There are still many other factors that are being debated regarding excessive spreads and other topics, and this was just one issue. If you are wondering how particpants can pop 'in and out' of the LEVEL 2 screen than you must be confusing ECN's with MM's. Only ECN's can jump-in and jump-out of stocks without maintaining a two-sided market. I will wait to hear what you actually asking. I will try to elaborate further at that time. All the best, -- Gene