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To: Fred Puppet who wrote (6302)	12/23/1997 10:25:00 AM
From: Dan Duchardt	Respond to of 16892

Thank you Fred. This clarifies the situation for me. I will certainly check out the link to nasdaq. It looks like this is exactly what happened. As long as my bid was in place, some transactions at that price were executed, but not mine. Late in the day I cancelled, and lower price transactions followed.

To: Fred Puppet who wrote (6302)	12/23/1997 10:29:00 AM
From: The Vet	Read Replies (1) \| Respond to of 16892

Fred your answer to Dan is absolutely correct as far as the rules go but the MM's have their own little twist. They allow the Island price to set the bid and only match it if another customer wants to sell at the Island bid price. In effect they do not place any bid that matches the one you just placed on Island, but they simply trade ahead of you as it suits them. They don't even bother to match your price on the quotes! Try placing an bid on any thinly traded NASDAQ issue for 100 shares or more at 1/16 above the MM bid price. You will see the quoted bid increase to your bid and just sit and watch. It is most likely trades will go through at that price but you will almost certainly not get a fill. Then cancel your bid and you will see the quoted bid immediately drop to the original price offered by the MM without any trades taking place. This is not unusual; it is the norm for almost all MM's since Island started giving us market representation.