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

To: Dominick who wrote (824)	8/27/2000 9:54:09 PM
From: gene_the_mm	Read Replies (2) \| Respond to of 1426

DOMINICK... I am not sure on this one. I know that the strategy of shorting against the box is intended to ALLOW an institution or daytrader to be able to short a stock on a downtick (it essentially creates a synthetic long position in one way or another--with ITM calls or account 'pairing' -- the latter of which I believe has been all but outlawed). As far as intitutions using such a strategy I really don't have a clue (LPS5 probably knows more about this). The only thing I am sure of is that shorting against the box is a way to create a 'hedge' that allows an account to circumvent the short sale rule. I never need to use such tactics so I don't know much about it. All the best, -- Gene