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

To: Shoot1st who wrote (2712)	12/16/1998 2:35:00 AM
From: Bill Green	Read Replies (1) \| Respond to of 7382

Shoot If you were a market maker, who would you rather do business with ? Someone who comes directly to you with an order or somebody who treats you as a last gasp attempt to get a fill. JMHO Merry Christmas to all Bill

To: Shoot1st who wrote (2712)	12/16/1998 8:17:00 AM
From: funk	Read Replies (1) \| Respond to of 7382

It took 31 seconds to complete the order. Shoot, what is your point? I mean you are talking about MM's here. Your order takes a fraction of a second, your confirm takes a fraction of a second. That leaves 30 seconds for the MM to curse your "daytrading" soul, look for a way to not fill you, and then finally put out when there is absolutely no legal alternative. Am I missing something? I am all ears. funk

To: Shoot1st who wrote (2712)	12/16/1998 9:02:00 AM
From: wily	Read Replies (1) \| Respond to of 7382

My preferenced SNET orders usually take about 6 seconds to confirm (which FEELS like a long time)

To: Shoot1st who wrote (2712)	12/16/1998 11:03:00 AM
From: JerryPutnam	Read Replies (1) \| Respond to of 7382

I can think of three reasons why the preference is better than the broadcast. First, there is a Nasdaq rule regarding liability orders. An order can be delivered to a market maker with liability. In SelectNet, that means the MM was showing some number of shares and you are first in line to deliver an order to him. Nasdaq surveillance gets an alert when a MM changes their market but doesn't print stock after receiving a liability order. Nasdaq actually has staff watching screens and making phone calls when this happens. SelectNet preference orders are delivered with liability, SelectNet broadcasts are not. If you are first in line and the market is moving away from you, your broadcast will most likely be ignored a preference can not be ignored. Second, nearly all MM's have order management systems. Some are proprietary most are not. One of the most popular systems is “Tools of the Trade,” affectionately known as TOOLS. Brass has introduced a competing product, I think it's called Trading Tools. These systems do all sorts of neat stuff. They can respond electronically to SelectNet preference orders and update the MM's quote. Or they can respond to a SNet preference and not update. They can move 1/16's. 1/8's etc. I mentioned the reserve order in my post yesterday. In MM world they call this a “back book”. Tools has back book functionality, so do the others. MM's tell Tools to show say, 1000 shares at a price but to auto execute up to maybe 5000. It can also be set to auto-ex after some predetermined time period or after the MM gets to look at the order. Remember, liability orders still apply and these systems can tell the difference, prompting a different response from the order management system. This functionality is dependent on preferencing and liability. I am not positive, but I believe it's possible to build a system to keep track of the Snet broadcast book as well. If this is available, a MM could decide to absorb all the buyers willing to pay the offer. But, it's my opinion, when this happens, if you are a momentum player it's going against you, you just don't know it yet. Thirdly, it costs $2.50 to do a broadcast and only $1.00 to do the preference. You pay more and when you get hit some MM is trying to stop the stock. If it's a big MM you may get killed. However, as I said before, we give you the choice of what system is best for you.