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

To: steve goldman who wrote (2866)	4/17/1998 4:09:00 PM
From: Alf	Read Replies (1) \| Respond to of 4969

Thanks Steve, I sure could have used this info today ! Tim

To: steve goldman who wrote (2866)	4/18/1998 2:33:00 PM
From: Martin E. Frankel	Read Replies (1) \| Respond to of 4969

I'm still very confused on the uptick vs. upbid rule and hope someone reading this can clarify the issue. It is my understanding that if the spread is less than 1/16, the stock can be shorted without invoking the upbid or uptick rules. Having a battle with Schwab right now and would appreciate some input as to who is correct. Order placed to short FLSHF at 8 limit on 03/31 at the opening... (order actually placed the night before). Time and Sales tape after the opening show the following: 09:30:04 B 8 A 8 S 10 x 21 LM 09:30:05 B 8 A 8 S 10 x 9 LM 09:30:13 100 8 1s 8.063 2219 09:30:15 100 8 8.031 2365 09:30:16 500 8 1s 8.054 2405 09:30:17 100 8 1s 8.055 2495 09:30:18 B 7 7/8 A 8 S 10 X 9 09:30:22 1000 8 8.024 2864 09:30:22 200 8 8.022 2907 09:30:23 1000 8 8.015 2992 09:30:25 2000 8 8.009 3135 09:30:27 B 7 7/8 A 8 S 10 X 13 etc., etc. Schwab claims they did not have to fill my order as it was a "locked market". If I recall correctly, there was a post on this thread saying that the upbid and/or uptick rule did not pertain when the spread was less that 1/16 and no spread certainly fits into that catagory. There were trades even with the zero spread and I know a number of people who shorted the stock at the opening at 8, but Schwab seems to be taking a hard line and I think they are wrong. I average 4-5 trades a day with them, but they don't seem to give a damn. Their commissions are high to begin with, but before I move on, I want to get this straightened out. I filed a complaint with Schwab's "Chairman's Hotline" and they came back telling me that they checked with my Schwab 500 team and "they" said they couldn't short the stock because there was no upbid. I tried to explain the less than 1/16 rule to them, but they didn't care and were actually quite arrogant about it. I also asked if they had consulted their legal department and the answer was no. I need some help and ammunition to force them to make good on the trade. I went in to cover a short time later at about 6 3/4 and that's when I discovered the short had not been filled. That was my fault for not checking, but it doesn't change the rules...does it? Help... anyone!!! Thanks in advance for any input. Marty