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 (1046)	9/12/2000 8:45:46 PM
From: dli	Respond to of 1426

If you don't see the display size change the MM is either auto-refreshing and is being hit with orders of the size he's displaying or larger or he is not hit at all and the prints you see stem most likely from some autoex arrangement or MWSE matching the NBBO. The latter is also likely the case with your Datek example. Dave

To: Apakhabar who wrote (1046)	9/12/2000 8:55:47 PM
From: gene_the_mm	Respond to of 1426

APAK... VERY SIMPLE EXPLANATION... The 'tier size' which you see displayed on Level II for every MM can be modified manually by the MM (or his computerized system that represents customer orders), or will be decremented by SOES automatically. However, SELECTNET orders DO NOT affect that same tier size in any way unless the MM wants to manually decrement it himself. Example: ABCD is on the offer showing 2500 shares (represented on L2 as 25). He gets SOES'd for 800 shares and his tier size automatically (it is automatically done by the MM's NASDAQ workstation, unless he has an internal program that is specifically programmed to NOT change tier size when SOES'd) and his size becomes 17, or 1700 shares. Then, he is preferenced for 1000 shares and executes that order immediately. Although he has fulfilled 1800 shares of his obligation he is 'temporarily' still showing 1700 shares. He has a 'reasonable' amount of time to adjust OR move his market or he will be obligated to print AT LEAST another 1700 shares against his posted offering. In this case reasonable is about 5 seconds or less(incidentally the same time frame to move your market under the new SUPERSOES system). APAKHABAR... all you were seeing was the automatic changes that SOES will effect on an MM's tier size. However, most MM's have a 'reserve' size in effect, which is why you will see the size return to the tier size of the stock after it ticks down to 100 then back to 1000 (or 500 or whatever the tier size is). I hope that helps, -- Gene P.S.: I told you the trade would stand... what a pathetic loser that other guy was for even TRYING to break that trade. IMHO that was embarrassing to even ask for a trade break (what was he out at the time about $750?). Glad to see it worked out for you.