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

To: wily who wrote (1532)	10/22/1998 9:06:00 PM
From: Eric P	Read Replies (1) \| Respond to of 7382

I don't know if you're aware of it, but MM's are required to honor their quote if someone preferences them. If they don't it's "backing away" and it is very easy to get a judgment in your favor through NASD I wish this was true. Unfortunately, I believe the market makers requirements for SNet preferenced orders are the same as for SOES orders. ==> While they are at the inside bid/ask, they are only required to fill one order every 17 seconds. In a fast moving market, however, a lone market maker at the ask may have a queue of 10+ SOES orders and several SNet preferenced orders in addition. The market maker is capable of quickly filling all of the shares they want/need, then back away to a higher price. Actually, though, they may likely fill one order, then wait 17 seconds to see if the stock or market begins to turn back in their favor. After waiting 17 seconds, they will decide whether to fill another order or back away. It is interesting to watch the Level II screen during a fast move in a stock. You will see second and third level market makers being taken out as the Time and Sales reports the fills from traders bypassing the unresponsive market maker(s) at the inside ask (or bid). -Eric