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To: LPS5 who wrote (1102)	9/27/2000 2:48:41 PM
From: Robert Cohen	Read Replies (1) \| Respond to of 1426

Can you comment on the frequency of market makers maintaining a sizable inventory in a specific stock? Who in the firm makes a decision to do so and on what information is it based? Robert

To: LPS5 who wrote (1102)	9/27/2000 11:01:57 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 1426

LPS5, Or, a stock may be trading at 50 to 50 1/2, and a seller of 100,000 shares may call the trader to arrange a block distribution. Depending upon a plethora of factors, the block may, by way of example, be bought by the firm at a 2 point markdown (48 or so - you get the idea) - and may subsequently be fed into the market at the 50 1/2 price, held in inventory (perhaps the trader thinks that the stock will be going up), or sold to other clients via the sales force (again the commissions). Suppose the trader's firm does take in 100,000 at $48 or so, and subsequently feeds some or all of it into the market. What are the reporting requirements for the block trade? Dan