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

To: Char who wrote (476)	7/11/1998 6:34:00 PM
From: AHM	Respond to of 7382

I hope somebody who is knowledgeable answers you. I've had the same experience many times on Level 2 with AB Watley (which does not use ARCA) and LIVETRADE.com (which does use ARCA). Another question to add: often INCA and ISLAND bids/asks are at the top of the list during trading hours and/or at the close but it is the postings from Market Makers which are beneath the INCA and ISLAND bids/asks that are reflected in the bid/asks for a given security. Why? I join you in asking for an explanation from anybody who can - without guessing!

To: Char who wrote (476)	7/11/1998 7:49:00 PM
From: JASON	Respond to of 7382

Robert very good question if you do not get any responses here you may want to take the question over to Steve Goldmans thread (From the Trading Desk)He is the Head Trader at Yamner & Co. Jason

To: Char who wrote (476)	7/11/1998 10:24:00 PM
From: jawd	Respond to of 7382

Whether you are above or below MM's at the same price, it makes no difference as to whether or not you get filled. The level-II screen is an indication of who is offering what - it is not an indication of who is NEXT to be served. MM's are not under any obligation to buy/sell from/to any ECN or other MM unless you hit them with a SOES order up to the quantity they offer.

To: Char who wrote (476)	7/12/1998 2:04:00 AM
From: Sword	Read Replies (3) \| Respond to of 7382

David: When you placed your order on ARCA, the system handled your order like a Selecnet broadcast. In other words, all MMs could see your bid. There is no difference between ARCA and Selectnet broadcast when you are bidding at or below the best inside bid price. On the other hand, if you were bidding at or above the inside offer, ARCA would preference your bid to the most active MM and only that MM would be able to see it. But in the case that you described, it is not clear whether or not the inside bid dropped below your bid for a time before you got filled. If it did for more than a few seconds, the left column of the LII screen would have changed from "O" to "P" indicating that the bid was now preferenced. ARCA is a pretty sophisticated execution tool. But it cannot allow you to make markets! Therefore, the broadcast best bid and ask will never be affected by the price you offer. This is in contrast to ISLD, where you are, in fact, making a market. If you split the best bid/ask spread on ISLD, your price will be displayed across the nation instantly (or as fast as your ISP allows)! Furthermore, other traders using ISLD can hit your price. However, on ARCA, no other ECN can hit your price. So there are some limitations to ARCA. But getting on to your question..... 1. Bids are not filled in order on the the NASDAQ exchange. Any MM at the inside bid can be filled at any time. 2. Even if you were the only bidder at the inside bid, you still might see trades occurring at your price and not get filled yourself! This is because other market makers might want to continue to trade at your price even though they are displaying bids below yours. They are taking care of their regular customers and are being competitive. -Sword