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To: Morpher who wrote (2980)	2/14/1998 10:36:00 AM
From: Paul	Read Replies (1) \| Respond to of 12617

Morpher and Cader: With regard to the 300 share limit, I saw a discussion of this in Financial Trader, Volume 4, No. 11 which said in part: "The current trading system (SOES) automatically executes trades on up to 1,000 shares at the quoted price. Market makers have complained that day traders send in multiple 1,000 share orders simultaneously, thereby picking-off the market maker. The new system (NextNasdaq) will still execute orders automatically - but if a market maker is only willing to buy or sell 300 shares, orders smaller than 1,000 shares but larger than 300 would be executed at the next best price." More troubling IMHO: "NextNasdaq would also replace the present SelectNet system of order routing. Under the present system, market makers are penalized for failing to trade shares at their quoted prices. One market maker states, 'SelectNet orders have a tendency to pile up on my screen and there is no way I can possibly catch up.' To alleviate this problem, NextNasdaq proposes to deliver one order at a time. The market maker would have 15 to 30 seconds to execute the order." 15 to 30 seconds - egads - a lifetime. I don't think this article is on-line, but our local Borders usually has Financial Trader mag. which I peruse from time to time. You can probably get the whole NextNasdaq proposal from the NASD itself. The mm's LOVE this 300 share limit and the new SelectNet rule ideas, however, you are quite correct that they are not overjoyed with NextNasdaq - the reason is the proposed central limit order book. Still, you must remember that the NASDAQ board has approved this proposal and that this board is dominated by firms with market making interests. Finally, I should emphasize that this is still a proposal awaiting SEC approval. Regards, Paul