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To: peter n matzke who wrote (44478)	6/2/1998 9:29:00 PM
From: ViperChick Secret Agent 006.9	Respond to of 58727

Peter here is an email that I received about the RAES off the top of someone's head ;-) btw, it is easy to see why there could be a delay to us poor frustrated flippers... RAES is the CBOE's Retail Automatic Execution System. It is used by brokerages to electronically route their orders to the CBOE. All exchanges have these systems. The NY and Amex have the DOT system that equity and option orders are sent to. Generally, these systems all work like this. A broker will enter an order into his firm's order processing system. This order gets routed somewhere, depending on the parameters his brokerage firm has set up. If it is an option order, it may be routed to RAES (the CBOE) or AMOS (The amex option system), etc. If it is a market order, the computer at the exchange will execute it immediately, and send the fill report back to the brokerage firm. If it is a limit order, the exchange will send it into a limit order book that the specialist runs. Some brokerage firms will use a third party to execute orders at an exchange where they may not be a member. In this case, the order is routed to a printer on the floor, and a floor broker will then execute the order in the crowd.