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

To: gene_the_mm who wrote (1115)	9/27/2000 11:15:07 PM
From: Dan Duchardt	Respond to of 1426

Gene, The reason an MM fills you for more than his displayed size is that sometimes MM's choose not to 'show their hand'. That is to say, they probably have a position but rather than display 10,000 shares that they would like to sell they only display 500 or 1000. All that makes sense, but is it not also true that an MM must fill a SelectNet preference order at the requested size, or (assuming liability) fill at the displayed size and then move the quote? SELECTNET preference orders, whether liable or not, will stay live for 3 minutes unless otherwise set by the trader. Thus, while the MM may not be liable to fill you he can execute your order (if you choose to leave it live with him) at any point during that 3 minute lifespan. Under what circumstances is an MM not liable to execute a preference order? And if the order remains live for 3 minutes, if it has no liability when received does it ever become a liability during this 3 minutes? Dan

To: gene_the_mm who wrote (1115)	9/28/2000 8:57:06 AM
From: davealex	Respond to of 1426

One of my first decisions with preference orders is to MOVE out of the way to prevent 'dual liability' Gene and/or LPS5: Given that dual liability will be removed soon, this seems like as good an opportunity as any to ask what you think about SuperSoes (Nasdaq National Market Execution System) and SuperMontage (Nasdaq Order Display Facility). Maybe you can comment on decimalization, too. How do you see your day-to-day world changing when these three things are finally implemented? Easier/Harder? Faster/Slower? More or less complexity? More/Less Profitable? How about for us: Easier/More Difficult for individual day traders to execute in fast market conditions? And what about the changes to the way big institutions and hedge funds execute? How about smaller B/Ds? Will there be a wave of consolidation or will everyone likely get their piece of the pie and be profitable? I have heard many traders talk about how the new systems will radically change the way they trade, but I think it would be extremely valuable to hear what MMs think about it and how they believe it will affect what they do. Thanks in advance, Dave