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

To: Eric P who wrote (1494)	10/20/1998 8:40:00 AM
From: TraderAlan	Read Replies (3) \| Respond to of 7382

Eric, <So my vote is for allowing Crossed or Locked markets with ISLD orders! Does anyone have an inside contact at ISLD???> You're probably just being sarcastic and already know, but it's not their decision to make. From the NASDAQ Trader Chapter 2: Market Maker Requirements Chapter 2 Locked or Crossed Market Conditions When the best bid equals the best offer, or when the best bid is higher than the best offer, the market is considered to be “locked” or “crossed,” respectively. Market Makers and ECNs are required by Nasdaq Marketplace Rules to enter and maintain quotations in Nasdaq that do not lock or cross the market. As a Market Maker, you are required to take reasonable steps to avoid locking or crossing the market. An example of a “reasonable step” would be to enter a preferenced SelectNet SM order into the system to execute against the bid or offer that your quote would lock or cross. If you don't receive a response within 30 seconds of sending the preferenced SelectNet order, you may then display the order in your quote even if that quote will lock or cross the other side. If you follow these steps, you will not be deemed to have violated the Lock/Cross Rule. Locking or crossing the market without attempting to take out the other side by using a preferenced SelectNet order is a regulatory violation. See Chapter 4 for more information about SelectNet." Alan

To: Eric P who wrote (1494)	10/20/1998 9:11:00 AM
From: LiveWire	Respond to of 7382

I was told that if you SOES a market maker, he is obligated to fill your order. But, the stock has to be SOESable, whatever that means. I'll have to look that up again.

To: Eric P who wrote (1494)	10/20/1998 6:19:00 PM
From: wily	Read Replies (3) \| Respond to of 7382

>>1) Preferencing or SOESing a market maker at the ask, who has no intention of filling your order, Eric, I used to be suspicious of MM's "backing away" from preferenced SNET orders, but I really don't think it happens that much. In case you didn't know, they ARE required to fill any preferenced order they recieve, up to the size of their quote while their quote is still live--but only the first order, not multiple orders. It is pretty much impossible to get a SNET order filled in a very fast market, as the MM quotes are being picked off electronically by SOES orders. And SOES orders may not get filled either, because there are so many of them. You probably already knew this, but I thought I'd tell you just in case... wily