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

To: Sir Francis Drake who wrote (10915)	12/14/2000 1:42:06 PM
From: LPS5	Respond to of 18137

Are you familiar with POSIT? Intimately. Very, very familiar with it. It, in fact, is one of the types of systems which I am talking about. I'm almost tempted to say: if institutions want to play in their own sandbox - let them. If that was the case, I'd say fine. But the rules, and terms, of that sandbox will, if left unchecked, be increasingly determined by the retail part of the market which, although certainly a factor and indisputably important, should not be permitted to disproportionately - let alone exclusively - impact the pricing process. If there are no limits to the percentage/share amounts which can be transacted outside the continuous markets, price discovery will eventually be a primarily retail function, and not as it is, and should remain one factor, in the process, along with capital flows that underscore both the market conditions and risk appetites among dealing and block positioning firms, underwriters, and other large entities. Many individual stocks, and even parts of the market (such as internet issues back in early 98) are now controlled by the retail trade. Don't you believe that for a second. Retail forces are more a factor in the markets than they ever were before - which is a good thing, IMHO. They have an impact, a heavy impact...but to use the word "control" implies a level of power that, if retail market entities do demonstrate, is only because the actual, institutional market forces, dealers, exchanges, and the like allow them to by acting passively (as, of course, is sometimes required). LPS5