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To: Scrapps who wrote (2038)	3/26/2001 9:11:21 AM
From: Peace	Respond to of 2404

I know the types of order you are talking about but I am talking about institutions. They dont log on to your fidelity account and put in a limit order for 1 million shares of intel. They call their broker at Merrill or Goldman or Lehman or whoever and the broker then works it out with their trading desk. Remember, these institutions pay a lot of commission money to the big houses and there is an incentive for the broker to get a good price for the trades to keep his long term relationships with the institutional investor. Now to answer some of your questions. Block trading desks are to execute block trades and they collaborate with their buddies as they would know if there are other blocks out there. If I am looking to buy 250k shares and I find out from one of my buddies that he has a client who is looking to sell, my work gets easier. If not I have to start buying in the open market. My agreement with the client is to fill him in one trade so I dont fill him until I have accumulated enough. Of course the mm knows at all times what his positions are. But he may fill the block using a combination of blocks from his buddies, shares from his inventory and shares picked up in the open market. So, he will fill whenever he is ready and many times it is right after the market closes.