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Non-Tech : Datek Brokerage $9.95 a trade -- Ignore unavailable to you. Want to Upgrade?

To: Jack Zahran who wrote (6171)	12/4/1997 9:37:00 PM
From: ajulius	Read Replies (1) \| Respond to of 16892

Does anyone here know how Datek deals with losing short positions? According to Datek's portfolio on the web, it says I was hit with a margin charge, but yet shows my available balance as a negative number. I had the money in the account to cover the losing short position for several months, and saw no mention of the short position on my monthly statements or the website portfolio or history sections. Today in the mail the statement shows a DR of the amount of my losing short position plus margin interest from the time in which I withdrew funds, and they show the short position being closed out 3 days after my account was transferred to the other brokerage firm. It shows that cash was taken from the margin account to pay for the short and thus Im in the red xyz amount. Yet again on the website it doesnt mention this at all. Did Datek follow the correct procedures here? I would have assumed that a: Datek would have noticed I had the money in the account and would have closed out the short or b: when I transferred the funds to the other firm, they would have deducted the funds I owed them from it. Now what amount would I use to pay Datek back? If I pay them the amount on the 11/28/97 statement, would this be the correct amount?

To: Jack Zahran who wrote (6171)	12/5/1997 1:55:00 AM
From: Morpher	Read Replies (2) \| Respond to of 16892

Jack, I think when order is executed by Island then you see C 3 on your confirmations. You're right that there is however a handful of stocks that Datek is a MM in. Anybody has a list? As to Datek not sending your orders to the floor, there is no "floor" for Nasdaq. In representing orders all I care about is that when I enter a limit order I see it pop up on L2 screen under ISLD in several seconds and I see bid/ask change (unless it's at the open when it's much slower...) Datek can not legally not represent your order to the market. Datek can't get it for a better price without passing it to you either. Watch the Times & Sales if you need to confirm that your limit order went through exactly at your price. I don't use market orders and I would recommend against them unless you're a day trader and you trade very fast moving stocks. There is a problem with limit orders on Nasdaq however. There is a strong possibility that you'll see trades going through at your price without you getting an execution while you're the only one on the inside market. That's why MMs still have an upper hand in this game. I don't see any conflict of interest between Datek and us when it comes to trade execution. Would it be better for us if they routed our non-marketable limit orders to several affiliated MMs instead of ISLD? Maybe, maybe not. I can't say because I've done all my trading with Datek since new order handling rules went into effect.

To: Jack Zahran who wrote (6171)	12/5/1997 1:50:00 PM
From: Peter Stern	Read Replies (4) \| Respond to of 16892

Datek IS NOT a market maker, has not been a market maker since long before Datek Online started, and has no plans to be a market maker. Datek is currently listed as a market maker in TESTB, an imaginary equity used for test purposes, and a single real equity, QGLY. A market participant is not the same thing as a market maker. Datek acts as agent on behalf of its customers. However, as Datek is the sponsor of the Island ECN, the reporting rules require that Datek Online report the trade as principal in some cases. Regardless of how the trade is reported, Datek Online's goal is to provide 1) the best execution of any brokerage anywhere 2) inexpensive access to superior execution systems 3) the best customer support Have a great weekend... -peter