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Non-Tech : Brown & Company New "5 and 10 Store"? -- Ignore unavailable to you. Want to Upgrade?

To: Esteban who wrote (245)	11/12/1998 11:29:00 PM
From: Randall Thomas	Read Replies (1) \| Respond to of 1865

Baskets were the wholesalers' response to the huge losses they took on the internet wonderstocks like ktel, marg, and a host of others this spring/summer. It shuts a stock off the automatic system as soon as the trader is short/long a certain amount of stock (at some places this is tied to price movement and time as well, it is hard to get specs on each of the big 3's system nuances hrzg nite mash). The general idea is to keep a trader from suddenly being short 100k of some internet crap stock that goes up 10, and then having it all shoved back down his throat when it turns because the stock is on the automatic system. this happened all over the street last spring at the various wholesalers. In some cases traders would be automaticed and short hypestocks from the beginning and have them go 10-20 points unable to close their short (often being made to short more as it went up to fill customers orders) Datek's problems are separate from this. I suspect their market orders that dont get filled off isld are being sent to a retail market maker (not a big wholesaler) who does not have autocancel. ISLD itself is lighting fast at the open....the datek problems are internal to them, not an ISLD issue.