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

To: bede who wrote (2587)	12/6/1998 1:33:00 PM
From: Rick Faurot	Respond to of 7382

bede, Depends on the situation, though generally, if you make a smart ISLD bid, ie one that isn't likely to cross/lock kill, ISLD is always fastest. Again, there are lots of factors. I was playing ONSL last week and used ARCA exclusively and got instant fills by bidding above the ask or offering below the bid. Sometimes you can cross the ARCA book with an ARCA order and those trades will go just as fast as ISLD. In a fast stock, ARCA has one major advantage over ISLD: the ISLD computer is very twitchy and it has a notable tendency to give you a partial fill and then kill your order. If you are trying to jump into a big move and you get a fill for 100 instead of 1000 and then your order gets killed, it can be a real bummer to see the stock run three points and you holding a wimpy 100. Not good! By bidding above the ask with ARCA, you get the same automatic search for the lowest price that ISLD gives you, but ARCA never kills your order. The trade may run past you without your getting all the shares you wanted, but your order will stay live until you kill it. In the example I cited the other day on a trade in EGHT, a guy bid 8 5/8 on ARCA when the inside ask was 8. This high of a bid gave him time to fill his whole 20k order. He got a bunch at 8, and so on until his last few k were at 8 5/8. The trade blew past him for two points. He turned around and offered at 9 5/8 when the inside ask was 10. Again, ARCA filled him mostly at 10! He sold the rest at 9 7/8 before the trade ran up a little higher. With ARCA, he made an average 1 1/2 pts on 20k shares...a huge order to fill in a fast stock, especially when less experienced traders were counting themselves lucky to fill for 100 shares. Another factor in his using ARCA on this trade was that by bidding 5/8 above the ask at 8, he put tremendous pressure on the stock to run even faster than it was. With an ISLD bid, he would not have displayed at the high price and thus would have had no effect on the trade. So ARCA can not only be fast, but it gives a trader a chance to influence the market. In slower trading, I might be inclined to go to ISLD if I see a good supply at the ask. When the action is slower, ISLD is definitely faster than ARCA, although there are some changes in the works with ARCA which may alter that speed advantage a little. Not clear what you mean by "enriched SOES offer." You can only bid the ask on SOES or offer at the bid if you are using a limit order. If you want to use a market order with SOES, I am told you will fill similarly as ISLD or ARCA, but I have never tried it. I expect it would be considerably slower than either ARCA or ISLD, as MMs play games with every order they look at, including SOES orders and in a fast market, you would have SOES orders backed up, making SOES unreal slow. Rick

To: bede who wrote (2587)	12/7/1998 1:09:00 AM
From: scanshift	Read Replies (1) \| Respond to of 7382

Resting bid below the market, Archipelago or ISLD? An interesting point Bede, see some of my prior posts about ARCA. I have this question, if you are going to put a resting bid below the market, would you use Archipelago where there are 7500 trades a day based on the information at polartrading.com or would you use ISLD where they did 177,112 trades on Friday isld.com The reason being, is say the stock trades down to your price level and both Archipelago and Island are there. It may trade your price, not trade through it and then pop. Which ECN is your best chance to get a fill? The numbers lead one to believe without a doubt it would be ISLD. Note- The same questions are applicable for resting offers placed above the market.