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

To: LPS5 who wrote (10912)	12/14/2000 12:39:33 PM
From: Sir Francis Drake	Read Replies (1) \| Respond to of 18137

"...I am a strong advocate of restricting, on the basis of a certain percentage of the average daily volume, the amount of trading which can be conducted outside the normal market venues in crossing systems and the like." Perhaps an understandable position, but wholly impractical, IMHO. Would that restriction apply to an individual MM or single market participant on a given trading day? And on whom would the burden of adhering to the restriction fall - the executor or the client? If f.ex. and institutional client wants to buy/sell a large number of shares, and he needs to have it done in one trading day, he could always break it up among several executors and specify that he wants it crossed in a given venue - there are too many ways to get around the restriction. And even if you somehow could enforce it at either end, I'm not sure there would be any benefits to be derived from the restriction, if f.ex. several market participants all had to move large number of shares independently (which can happen when MFs en masse leave a sector or buy in etc.) - you'd still get tremendous volume in the alternative venues compared to regular trading. While we can and should speculate on how to improve the proposals that are on the table right now, I think we should always give them the benefit of doubt - I don't think that there is intent to "rig" the game in favor of particular parties, or against others (like f.ex. daytraders). Rather, the issues are very complex and of necessity require compromises which will rarely leave everyone happy. Every proposal carries with it some benefits, but also liabilities elsewhere. Of course, as we well know, even with the best of intentions, there are often times unforeseen consequences which become apparent only once the proposals are accepted in practice. While I have my own projections and speculations, for now, I'm humbly reserving judgement as to how all this will work out in practice. Morgan