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

To: Esteban who wrote (249)	11/12/1998 11:52:00 PM
From: Randall Thomas	Respond to of 1865

<<<That's the most reasonable speculation about the inability to cancel orders at Datek I've heard so far. But with this scenario, why wouldn't the market orders just fill in the first place like they do with other brokers?>> If I am correct about datek using a retail mm for market orders (NOT a wholesaler)...there are no baskets, no auto-matching, no automatic fills. For the most part smaller retail market making firms have few if any stocks on automatic execution. Manual fills are done with huge leeway and potential for abuse by the trader. The key concept is a trader (market maker) never wants to take unwanted risk unless he has no choice. Manual execution gives him a lot of leeway with this, and gives him the ability to not let you out of an attemted cancel if he wants to go ahead and fill the order. Unlike a wholesaler, it is possible the trader actually has time to screw with your order as well, rather than the auto-pilot inertia most of the wholesalers seem to operate on.