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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: smh who wrote (4019)	12/23/1998 11:55:00 PM
From: smh	Read Replies (1) \| Respond to of 4969

Steve, More info to add to my confusion. SMH To: Scott H. Davis (11436 ) From: Ace Wednesday, Dec 23 1998 11:42PM ET Reply # of 11442 FYI...the ask never dipped lower then 1/4 during the day. Ask was 5/16 and bid was 9/32 at the time of 60k trade @ 1 . time: 14:40 Followed by 14k @ 1/8 , 5k @ 1 , 1k @ 1/4 , 5k @ 5/32 , 500@ 1/8, 5k @5/16, 5,1.5,5,1.5 k @ 1/4 , 5k@ 1/8 , 2k @ 1/4. Ask 5/16 - Bid 9/32 All within 30 sec. Scott: I have counted 20 MM's on Triby. Some of my friends had large buy orders in, did you guys fill ???

To: smh who wrote (4019)	12/24/1998 5:16:00 AM
From: steve goldman	Respond to of 4969

Generally speaking, the firm you gave the order to, and the firm which the firm gave the order to, if they routed the order, is responsible for showing your bid at 1 1/8. The firm that was selling the block piece has a best execution responsibility, that is, they should have 'hit' you bid so they could sell atleast some at an 1/8, then the balance at 1. Thereby, it should never have traded through you. BUT, block pieces and prearranged trades, can agree to do it at some price outside market as long as both sides and clients agree to it. Here, the market maker didnt want to bother even hitting your bid since the buyer wanted to the whole piece at 1, the same price the seller wanted. THus they traded right around you. On the NYSE< if its a trade that occurs on the exchange, through the specialist, this could never have occurred. You would have gotten filled, infact, probably at 1. There is some manual the nasd put out on all the various scnearious relating to manning rules...do a search at nasdr.com for it..i'd do it for you but i'm heading out of town tonight and know I'll never get to it...if you dont find it, remind me after new years. REgards, Steve@Yamner.com

To: smh who wrote (4019)	12/27/1998 7:13:00 PM
From: Jay Morrison	Read Replies (1) \| Respond to of 4969

SMH, your bid on TRIBY @ 1 1/8 is a prime example of what is wrong with many of the discount brokerages out there. They charge you $15 per trade (or some similar cheap price) but they can then route your order in such a way as to make the spread between the bid and the offer. For example, let's say the bid/ask spread on TRIBY was $1 bid, $1 3/16 ask. That means that your broker will not execute your order until the ask is down to $1 bid, $1 1/8 offered. They won't even tell the rest of the market that there is a bid at $1 1/8. They want to find a seller at $1, then they will give that guy $1 for his stock, and then charge you $1 1/8 for your purchase. On 1000 shares, your broker just made $125 bucks by playing the spread. This happening can allow trades to occur below your bid price. Your broker makes the most by having the order flow through their own system. Your broker could simply sell you the stock at $1 1/8, then immediately go to the rest of the market and buy it back for $ 1 1/16. They do this all of the time with other market makers. Discount brokers can't make money charging $10 per trade. They are making money by ripping you off on the spread. Jay