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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: slipnsip who wrote (5220)	6/9/1998 1:32:00 AM
From: Bilow	Read Replies (1) \| Respond to of 164684

Hi David A. Hurbanis; Regarding Datek; I trade at Block, which uses Datek. Sure enough, as you suggest, we can make market using Datek's ISLD ECN. That said, Block only allows us to short stocks on a list, or by specific request in advance, and AMZN is not on that list. I haven't tried requesting shares. My guess as to why Datek always has shares to loan is that there are a lot of small time AMZN market makers on ISLD, and they keep themselves net long. Incidentally, it is quite common to see ISLD alone providing one or both the high bid and the low ask, so the effect of ISLD, I believe, is to reduce the spread for the retail customer. -- Carl

To: slipnsip who wrote (5220)	6/9/1998 6:56:00 AM
From: gbh	Respond to of 164684

Does Datek make markets in securities?? I understand they have their little Island trading system, but I bet they make markets as well. Yes, my understanding is they do. In fact, they state as much on their snail-mail trade confirmations. Think about it, how could one firm consistantly have shares to short when no others appear to?? I agree with your assessment. However, one guy on the Datek thread yesterday was unable to short KTEL. He said he got some message while trying to enter the trade like "Cannot short this stock today". I generally don't short stocks with as thin a float as AMZN, but I've never seen this message. Oh well, I 'll let the thread know if these shares get called away. Gary