Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Steven Bowen who wrote (3412)	7/23/1998 11:19:00 PM
From: Brendan W	Read Replies (1) \| Respond to of 4969

Satyr, Steven... My trading is varied, but I don't trade on the Nasdaq very much. I rarely trade fast Nasdaq markets, but if I did I probably would do limit orders at the "bad" price. I frequently have execution quality problems, but if I do I call certain people I trust at Brown, and present the information to them and they call the MM to fix it. It's critical to have somebody representing your price improvement request who knows the laws and the markets. As you know, the MMs are required to display your order or fill you in x minutes, and if they don't, and there was an execution at your price, you're due a fill. Steven, do you know which MM receives your order? Your broker is required to tell you by law (I'm told). As you probably know they can't trade ahead of you, so if it's a liquid MM you will in general get filled. I wonder if ones gets routed to an ECN (TNTO, INCA, ISLD) if one is at a disadvantage because the ECN charges per share to match the order. Somebody has to pay that. I'm not an authority on this but I think MASH and NITE are the most liquid. I don't think it's possible to be too paranoid about the market makers. If there's money to be made, and there's no enforcement of existing law or if they can get away with not giving you the unprofitable fill, they will do it. Why should they fill you on an unprofitable transaction, unless you phone them and hold them accountable? I don't see how MB Trader or Cybertrading would fix this problem. Why should a market maker fill you at 40 1/8 when he can take it himself and narrow the ask to 3/8? Only if he has to. The only way I know to fix that is to call, or to make your bid 40 1/4 so that taking it into inventory is uncomfortable for him.