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To: Bob Wells who wrote (3632)4/23/1998 9:28:00 PM
From: jeffbas  Respond to of 6317
 
All of the above. Market Makers primarily represent customer orders, and very secondarily their own trading accounts. There is no buyer/seller of last resort as in the specialist system. But that only cuts so far. I would say that the specialist does promote more orderly trading activity and narrower spreads on most of the trading. However, when you have gap openings because of news, I would not assume they are any better than Market Makers.