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: Apakhabar who wrote (1008)	9/8/2000 5:59:05 PM
From: Alski	Read Replies (1) \| Respond to of 1426

Apakhabar, I noticed in your post that there were 1000 shares offered at 17 but 1400 traded. I wonder if that has anything to do with it? Let us know what they tell you Monday, especially if we can learn how to break trades that later turn out to be less than brilliant. I've made a few I'd like to have back :-)

To: Apakhabar who wrote (1008)	9/9/2000 8:03:38 PM
From: Wayne Rumball	Respond to of 1426

Apakhabar, I appear to be the king of broken, reported in error, and cancelled trades. If I added them up I'm out about 400,000 bucks. Your case is total F&(ing BS. Probably 1 of 2 things will happen; 1; The stock will run up on monday and you will be denied your fill. 2; The stock will tank to 10 bucks and you'll get it All kinds of weird sh( happens in AH, your trade doesn't seem breakable IMO.

To: Apakhabar who wrote (1008)	9/9/2000 8:40:34 PM
From: Wayne Rumball	Respond to of 1426

Now here's a good example to take to the bank; INDYY - look at friday's logs. The guy that sold at 3 1/2 is probably glad he got out, and the guy that unwittingly bought those shares is probably not sleeping well this weekend We may be playing ECN's in after hours and premarket, but I have a feeling MM's are really the ones calling the shots Why should your trade be cancelled when that $3 1/2 is not (of course now that it's mentioned it will be) Take that to the SEC

To: Apakhabar who wrote (1008)	9/11/2000 9:57:22 PM
From: gene_the_mm	Read Replies (2) \| Respond to of 1426

APAKHABAR...AND OTHERS... I am an INSTINET subscriber, a market maker, and I personally do about $30,000 to $40,000 of business (or more) per MONTH on INSTINET. You would guess that I am a 'valued customer' right? The EXACT same scenario happened to me where I carelessly sold an $18 stock at $17 at about 4:05 pm (about 1500 shares I believe). I called them, told them it was 'clearly erroneous', bitched, moaned, complained and threatened to call NASDAQ's market regulation desk if I had to to file a clearly erroneous. Well, to make a long story short I did not have a leg to stand on and the trade stood. The odds of them breaking your $17 stock that was for 200 shares only and 3/4 out of the money is ridiculous. Moreover, the rule for after-hours and pre-market trading is CAVEAT EMPTOR (buyer beware). To me, clearly erroneous is selling a $17 at $7 with no news out. That, you can make a case to NASDAQ to. 200 shares 3/4 out of the money? IMHO, not a chance and I would suggest you fight it all the way. I have been 'taken' for far worse, as I cited above, so I would guess you will be fine. Breaking after/before hours trades that are within 1 point of the previously closed market is VERY unlikely. Again, CAVEAT EMPTOR. Let us all know what happened, -- Gene

To: Apakhabar who wrote (1008)	9/17/2000 4:24:01 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 1426

Apakhabar, et al. I came across this interesting Q&A from the Nasdaq Manual Chapter 8, Clearly Erroneous Trades Q. Are executions done through an electronic communications network (ECN)/alternative trading system (ATS) covered by the erroneous transaction rule? A. The rule is restricted to systems owned or operated by the NASD or its subsidiary corporations, such as Nasdaq. The rule covers transactions done through the Nasdaq system in SelectNet with authorized ECNs/ATSs. The rule does not apply to trades executed by an ECN/ATS outside of the Nasdaq system (e.g., orders transmitted directly to an ECN/ATS that is crossed internally by the ECN/ATS). I assume the ECNs themselves could break a trade in extreme cases, but I can't imagine them ever breaking a trade at their individual inside markets, other than for something like the split someone else mentioned. Dan