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

To: SteveDavis who wrote (696)	8/20/2000 10:22:00 PM
From: LPS5	Read Replies (1) \| Respond to of 1426

Different firms use varying reference sources to ascertain exactly which issues fit into certain sector categories and subcategories, and I'd bet that Dow Jones, Bloomberg, and S&P are the main sources consulted. That said, I don't think that (other than specificity, namely the degree to which the sectors are broken down) there's much difference if any at all from source to source. With regard to wholesalers, committees set criteria regarding to the decision to deal - or discontinue dealing - in a certain issue. Wireshouses, on the other hand, will often deal in certain issues as a part of their underwriting obligation. In either type of firm, the decision to deal in an issue can sometimes be made upon the recommendation of a trader, or sometimes in response to a competitors' doing so. But overall, the details - volume, price level, institutional interest, "timeliness" of the sector, etc. - leading to that decision are overwhelmingly based upon unique, proprietary firm recipies. LPS5

To: SteveDavis who wrote (696)	8/22/2000 10:30:10 PM
From: gene_the_mm	Respond to of 1426

STEVO... Sectors are usually the 5 to 10 market leaders in a particular sector (semiconductors, etc.). However, they are subjective to the source (IBD's list might differ from the S&P's list). As far as making markets in low-volume stocks and those kinds of decisions those are ALSO all SUBJECTIVE. Each firm has a risk-reward scenario they use to choose the best stocks to make markets in. You can bet the MM's in those super-thin deals have some kind of firm interest (either underwriting and/or retail) that offers them some offset for the potential huge losses they could face for making markets in those stocks. I personally look for volume of at least 10,000,000 shares a day or more for my 'bread and butter' NMS stocks. Hope that helps, -- Gene