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

To: Mama Bear who wrote (1501)	10/20/1998 6:34:00 PM
From: wily	Read Replies (1) \| Respond to of 7382

Mama Bear, >>I have observed ISLD lock the market numerous times today See, I THOUGHT that I'd seen that happen, and now I have corroboration. My guess is that these are Island orders entered by Datek, who own the Island system, and are probably the only ones (among Island users) who have this kind of priority. Each ECN has a deal with Nasdaq concerning what kind of priority their quotes get and they pay Nasdaq accordingly. I think Instanet has the most MM-like priveleges. My brokerage (Watley) doesn't have any information posted concerning this, and you pretty much have to find out the hard way. It's not in their best interest to advertise all the bad news... >>What is silly is if GSCO wants to buy 1000 WXYZ at 10 and ISLD wants to sell 1000 (or less) WXYZ at 10, why isn't the trade just crossed? What is sillier, is why don't they do the limit-order pool idea they've been talking about? Because, then what would the MM's do for jobs?

To: Mama Bear who wrote (1501)	10/21/1998 2:13:00 PM
From: peter michaelson	Read Replies (1) \| Respond to of 7382

From the NASD Manual nasdr.com e) Locked and Crossed Markets (1) A market maker shall not, except under extraordinary circumstances, enter or maintain quotations in Nasdaq during normal business hours if: (A) the bid quotation entered is equal to or greater than the asked quotation of another market maker entering quotations in the same security; or (B) the asked quotation is equal to or less than the bid quotation of another market maker entering quotations in the same security. (2) A market maker shall, prior to entering a quotation that locks or crosses another quotation, make reasonable efforts to avoid such locked or crossed market by executing transactions with all market makers whose quotations would be locked or crossed. Pursuant to the provisions of paragraph (b) of this Rule 4613, a market maker whose quotations are causing a locked or crossed market is required to execute transactions at its quotations as displayed through Nasdaq at the time of receipt of any order. (3) For purposes of this paragraph, the term “market maker” shall include any NASD member that enters into an electronic communications network, as that term is defined in SEC Rule 11Ac1-1(a)(8), a priced order that is displayed in The Nasdaq Stock Market. Such term also shall include an NASD member that operates the electronic communications network when the priced order being displayed has been entered by a person or entity that is not an NASD member.