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

To: Howard R. Hansen who wrote (1688)	10/30/1998 7:48:00 PM
From: Eric P	Read Replies (1) \| Respond to of 7382

Howard: I followed your explanation until I got to this point. Why is the quote for Dell 62 bid by 62 1/16 ask in this example?. The example shows the lowest offer is 500 shares at 62 3/32. Shouldn't the quote for Dell be 62 bid by 62 3/32 ask. My thanks in advanced to any one who can answer my question. In that example, the quote for DELL was 62 bid by 62 1/16 offered. Note that this is the inside (best) bid and offer from all of the market makers and ECN's on the Nasdaq system. The ISLD book does not necessarily have a posted price on its book that matches the best on the Nasdaq system. In this example, the best Nasdaq offer was at 62 1/16, while the best offer posted on the ISLD book was 62 3/32. As a result, if you entered an ISLD order to buy XXXX shares of DELL at 62 1/16, your order would be rejected. => Since there were no matching offers on the ISLD book and it could not be posted on Nasdaq since creating a new 62 1/16 bid would lock the market at 62 1/16 bid by 62 1/16 offered. -Eric