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

To: Alan Stalter who wrote (3500)	8/20/1998 10:17:00 PM
From: steve goldman	Read Replies (2) \| Respond to of 4969

"Most of the crosses you see are being done by sales traders on institutional desks across the country or market makers with firms that don't "make" the stocks." - i'd disagree. Most stock ultimately flows through mms. Someone said that ACT was primarily for brokers to lock in-, affirm trades...dead on correct. ie. I call MLCO and buy 10k ABCD at 34 1/2. its all verbal, the 'system' might be phone based, but now, they 'put up' their side on act and I lock it in...now its affirmed done deal..without it, you'd be waiting till settlement and not knowing if the firm will come with their side. A lot of mm systems, ECNs do their trades on their proprietary system and then lock in on ACT. its a way for firms to feel comfortable that they are in agreement and locked in on a trade. For instance, SOES autolocks both sides, as does SNET. but if you route and order to MBTrading to buy 1000 abcd from ISLD..on terranova's nasdaq terminals they will have to lock in the trade that ISLD puts up to affirm it. Tape, printing - market maker in transaction or seller in trans where both parties are NOT mm's, reports to tape, must be done so in 90 secs. mm putting up their side of a trade in ACT prints to tape...soes and snet print to tape automatically. "(firms are very tight-lipped out giving out names of parties involved) "- i'd disagree also...firms like letting people konw they are buying so firms know where to take their orders...varies.. "Also trades are put on the tape to influence action even though the actual trade could have taken place hours ago." - it happens but is illegal and less prevalent. usually late prints or forgetful traders. I am more than happy to share my experiences , which can only be from my perspective and my freinds, family, associations at various firms up and down the street. In deciphering what actually happened, its always a toin coss, you just try to narrow down the facts as tightly as possible. Wedding this weekend! My first cousin is marrying my brother-in-law....talk about a tightknit family...anyway... get up the dialogue, i'll get back in the game on Monday. i have umpteen events to go to...the wife's tuggin' on me already. :) - steve@yamner.com