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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: David Smith who wrote (2014)	12/14/1997 11:13:00 PM
From: Morpher	Read Replies (1) \| Respond to of 4969

What is your take on ECNs? Any thoughts would be appreciated. For example: Do you ever post your bids on ECNs? Do you prefer one to the other? Why is Instinet more popular than Island and others? Do you ever execute orders that decrease the spread that are posted on ECNs just because they cut into your profits? Is a chance of getting a fill lower when using an ECN like Island compared to an order routed to a MM with high volume in that stock on a limit order inside the spread?

To: David Smith who wrote (2014)	12/14/1997 11:15:00 PM
From: funk	Read Replies (2) \| Respond to of 4969

Great post! While you state that it is unlikely that any MM's really care what is said on SI, could you identify any websites that you as an MM or other MM's might find valuable? Also developing a list of the most shorted stocks...just how would one accomplish that "easily" as you said? Christopher thanks, funk

To: David Smith who wrote (2014)	12/14/1997 11:23:00 PM
From: Joe Sixer	Read Replies (1) \| Respond to of 4969

....largest short ratios in the market (VERY easy to do).... Christopher: This is a strategy I have considered. Do you have links to NYSE & AMEX listed companies short interest? I have the NAS covered. TIA Joe

To: David Smith who wrote (2014)	12/15/1997 7:20:00 AM
From: steve goldman	Read Replies (2) \| Respond to of 4969

Christopher, Welcome to the Trading Desk Thread! Its great to now have someone posting here with your perspective and experiences. As a trader, Chris and I have pretty similar roles, to execute trades at the best possible prices given market conditions, etc. The only difference is the securities that we handle and what price the client gets (agency vs. principal). Because of the size of his firm and the breadth of their qualified traders, Chris handles 10 to 30 stocks, I believe he stated. I apologize if I mistate the number, I tried looking back but couldnt find it again. Please correct me if I was mistaken Chris. Thus any trade the firm must make in those 30 stocks is given to Chris or one of the other traders handling these stocks. Thus if the firm needs tobuy INTC, the INTC trader who is watching INTC and only INTC (or INTC and a few more) gets the call. Contrarily, because of our small size, I handle trades in all securities, OTC, listed, options, fixed income, etc. A firm such as ours is referred to as agency-only firm while Chris's firm is a market or acts as principal in trades. When I execute a trade to buy xyz at the market, if I can get a price improvement, buying inbetween the bid/ask spread, or on the bid, etc., my client gets that price. Because we act as agents only,we don't act as principal. Chris goes for the same great price but when he gets that price, I am assuming that the firm gets the better price, the firm inventory gets that better price and then the customer gets filled at the offer or somewhere above where Chris got the print, the difference beingthe firm's profit. I deal with the "end" client all day, speaking to them, giving them reports, etc. Chris probably never speaks to the end client getting the 200 shares of xyz but rather has clerks or brokers in between. I assume large, large clients might want to talk to the trader to get a feel and your firm allows this perhaps because of their size. I would love it if you could answer a few of the following questions: 1. Who determines how much markup you put on each trade? Is it fixed or can you adjust if the customer is buying a large piece? 2. What is your average markup? 3. If a stock is running against a clients's order, do you even consider doing it as agent to simply get a great execution for them and then charge a commission or do you simply go for the spread 100% of the time? 4. How many stocks didyou say you handle? 5. Which ones? If my memory was correct in thinking you had posted 30 somewhere, isn't that alot? I assume that these must be smaller issues since I could not imagine that your firm would have their trader in the big stocks, intc, dell, msft, amat, handling 30 other issues. 6. What firm do you work for? Personally, full disclosure is the only way to keep it straight on thisthread. I would think that not disclosing this could be considered disceptive andmight lose you your liscense if things went sour. 7. Do you have to go home Flat, with no inventory every night? I probably have bunch of questions but lets get these answered first. Thanks again for your contribution. If anyone, including myself takes any pokes at you, don't sweat it. We all know how hard and commiteed we all must be to post substantive messages on these threads. Hopefully you won't burn out and can remain a contributor for a while. Regards, Steve@yamner.com

To: David Smith who wrote (2014)	12/15/1997 2:36:00 PM
From: Nukeit	Read Replies (1) \| Respond to of 4969

Christopher, Thanks for coming on this thread, My question is, do the Mutual Funds and Institutions have a minimum stock price and Market Cap that they they will start buying at. johneb