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

To: Snowy who wrote (7725)	4/4/1998 11:52:00 AM
From: Mighty_Mezz	Respond to of 16892

>>Can the market maker step in front and execute their trade instead of mine?<< Yes.

To: Snowy who wrote (7725)	4/4/1998 12:26:00 PM
From: dumbmoney	Respond to of 16892

I called Datek's Customer Support and he check the time and sales reports and said my orders were being represented (I agree) but since their orders aren't time prioritized (?) the Market Makers can always step in front my order. I don't buy that explanation. Orders handled by a particular market maker or ECN are generally prioritized, but remember there are many market makers. Orders aren't sent to a central location for processing, so the fact that you were first to set a new ask is irrelevent. The only restriction is that trades cannot take place outside the spread; it would be 'illegal' for another market maker to sell at a price higher then your ask (without first buying your shares). Yes, this can be frustrating. Once my small order sat on the ask ALL DAY without being executed (it was a thinly traded stock, but still...)

To: Snowy who wrote (7725)	4/5/1998 6:11:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 16892

There is nothing wrong with what happened, and it is unlikely that anybody is cheating you. You aren't entitled to a fill to sell at the offer, plain and simple. There may be others also offering stock at the same price, and your order has no priority. So, let's say you are offering at 23 1/2. Schwab drops their offer from 23 5/8 to 23 1/2. A Schwab customer comes along with a market buy order. Why do you think Schwab would give the order to you? They are going to fill it out of their own inventory. OK, now let's say a Merrill Lynch customer comes along with a market order. Merrill doesn't have any inventory. Now, they have a choice - who do they like more - Schwab or Datek? Well, most MMs don't particular like Datek, because the way they do business tends to eat into their spread. So, the order goes to Schwab. Nothing wrong with any of this, and all perfectly legal. A bit of simple logic should make it clear that you aren't entitled to, nor should you expect, a fill selling at the offer, no matter how many shares go through at that price.