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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (10584)	11/6/2000 7:19:01 AM
From: TraderAlan	Read Replies (2) \| Respond to of 18137

LP, Sounds like the current tiering quote software will become obsolete. It also sounds like most current scalping strategies will go away. Also makes sense for retail traders to place their routine limit orders a few tiers away from the inside. Might even contribute to a retro-boom back to Level I. Alan

To: LPS5 who wrote (10584)	11/6/2000 10:46:55 AM
From: Dominick	Read Replies (1) \| Respond to of 18137

Hi! LPS5: Just curious. Did you listen to "Anthony@Pacific" radio show on the net last night at 10:00 p.m. ET? If you didn't, he discussed how the NASD increased volatility buy eliminating the rule in July 98,that a MM's quote had to be within 150% of the average MM' quotes. He gave some examples on level 2, i.e. bid $1, offer $65 from the same MM. This he says negates their responsibility of providing a market and reduces their liability. The MM's will do most of their trading on ECN's. Also, they reduced the 1000 tier size to 100 shares. If MM's has quotes every tick, (1/16), under the old rules, (pre 1998), it would take $32K to move one point. Whereas now it would only takes $3200. Your comments please, Dominick