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To: Apakhabar who wrote (1278)	12/5/2000 9:11:50 AM
From: LPS5	Respond to of 1426

But mainly I question the usefulness of "transparency" to traders in general. I want the market to be deceptive. That is where a trader's skill can be worth something. If there weren't "secrets" in the market, where would the inefficiencies that traders need come from? Aptly put. While transparency is a crucial factor, let no one forget that it cuts both ways. For retail investors and daytraders, transparency is crucial, whereas for institutions, while beneficial, it can at times wreck the party, so to speak. In fact, for large institutions, the return to total anonymity for certain transactions - a backlash versus the cost implications of transparency on size - is the next "killer ap." It was a large part of OptiMark's allure. Other alternative trading systems, like @Harborside and LiquidNet, are focused similarly: to keep the negotiation and pricing of large blocks of stock anonymous until they hit the tape. That said, let me be clear: I am a proponent of TOTAL transparency in the markets, with provisions for doing large blocks via the private systems such as listed above. And, I also believe that - as the SEC has provided for via 17a-23 and Regulation ATS - the number of shares traded via those block matching systems and the like should be closely watched, and at some point limited, lest we wind up having retail order flow effectively pricing large blocks of stock. LPS5 PS: That's the Archipelago, not E*Trade, commercial ;)