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

To: manfmnantucket who wrote (1038)	9/11/2000 11:21:51 PM
From: LPS5	Respond to of 1426

This may answer some of your questions. It addresses one very popular program trading strategy, index arbitrage. Message 14264798 I'm certain that, even despite the high level of automation and proprietary analytics employed by large dealing firms, none of their quotes are purely computer driven. Large program trades as discussed above, whether following a relative value, index arbitrage, or synthetic position strategy, pop in and out when certain preordained parameters are reached; none trade constantly. They're always "watching," though, and on a volatile enough day or days, may be in the market more than they're out of it. LPS5

To: manfmnantucket who wrote (1038)	9/12/2000 9:25:18 PM
From: gene_the_mm	Read Replies (1) \| Respond to of 1426

MANFMNANTUCKET...REGARDING PROGRAM TRADING... The term program trading refers to ANY market participant that uses a computerized system of ORDER and RISK management. As you pointed out, some people have programmed their system (and the systems themselves could be ANY type of program that will trigger and sometimes automatically try to execute orders). The types of programs that you seem to be hinting at are the large institutional programs that 'kick in' at certain times of day, futures price levels or individual stock levels. There is no way to know who is doing what, or predict WHEN any program trading will occur, or what side of the market it might be on for that matter. I am not sure I understand your reference to 'making the spread' regarding program trading. As far as telling what they add to or take away from the market there is no way of knowing. All the best, -- Gene