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To: Lee who wrote (83666)	12/4/1998 12:14:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Lee, I think that you need to consider market makers as those agencies which make a market by buying and selling shares of stocks (not derivatives)on behalf of others. Also, the market maker must continue to make a market in the shares of the companies regardless of its own inventory. I am not sure of the contractual arrangements with NASD to be considered a market maker. As to derivatives driving markets, they certainly can in the hands of hedge funds. The transactions a paired. For example, simultaneously buying calls and shorting a stock (looking for arbitrage profits). And when these positions are unwound at expiration there is the potential of tremendous volatility in the markets. But this is a far cry from controlling the direction of the entire market. That would require collusion on an unprecedented scale. Maybe I'm being naive, but I just can't see how it would be possible. TTFN, CTC