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Non-Tech : CYBERTRADER -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (919)	6/29/1998 7:56:00 PM
From: Morpher	Read Replies (1) \| Respond to of 3216

Eric and Darren, from isld.com FAQ: What's the difference between adding liquidity and removing it? There are always two orders involved in each match, one of the orders adds liquidity and the other removes it. In a given match, the order that was entered first is always the one that added the liquidity. When you send a new order to Island, that order is first scanned against orders already on the limit order book. If there is already a matching order on the book, you get an immediate execution. In this case you removed liquidity. If no immediate match is found during the scan, then your order is added to the book where it waits for another order to come in and match against it. In this case, your order added liquidity.

To: Eric P who wrote (919)	6/29/1998 8:16:00 PM
From: Stryker	Respond to of 3216

Eric, Thanks for the post, and for the opportunity to elaborate. I'll take them point-by-point. 1) "Did you make a typo on the cost per share? Should the cost be $0.015/share, or $0.0015/share?" The $0.015 is actually correct, as of the latest information we have from Island; however this is in effect only if the order is sent to Island via Selectnet. The CyBerTrader software allows a customer to request a preference via Selectnet to any party displayed in the Level II screen. While because of the direct relationship between CyBerBroker and Island this does not happen very often, it is a potential and required disclosure. 2) "Also, I am confused about how any ISLD order can REMOVE liquidity. Perhaps there is an easy explanation. I thinking is that each and every order adds liquidity. Unless, perhaps, an order reducing liquidity is one which already has a matching order existing on the book, thereby removing an existing order." We talked with Island to ensure we ourselves understand what this provision entails, and from our conversations you are absolutely correct. Basically a limit order, whether a buy or sell, that is displayed on the Level II screen, or held in the Island book, adds liquidity to the overall Island system. This is because the limit order offers others more opportunities to "take out," or find a matching order to execute against, already on the book. Thanks again for the question. I hope that the response has helped. Mark K. Stryker CEO CyBerBroker, Inc.