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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: JCinTC who wrote (6871)	3/29/1999 7:34:00 AM
From: TFF	Read Replies (3) \| Respond to of 12617

Nice find.

To: JCinTC who wrote (6871)	3/29/1999 8:59:00 AM
From: funk	Respond to of 12617

from your link: [13]: This type of conduct is illustrated by a taped conversation between two market makers, in which one market maker asks the other to raise his ask price, which results in the creation of a higher inside ask, at which the requesting market maker sells stock to a customer which had previously placed an order to buy: Trader 1: [Name of broker-dealer firm]. Trader 2: Hey [expletive deleted], why don't you go up, so we can see if we can make a 1/2 sale? Trader 1: Oh, boy, I like the way you think. Trader 2: Yeah? [Expletive deleted]. After Trader 1 raised his ask price as requested, Trader 2 made sales to his customer at the higher inside ask price created by Trader 1's quote movement (using stock he had purchased from Trader 1 at a price $1/8 below the new inside ask). As a result, both traders benefitted at the expense of Trader 2's customer. The same strategy was also used for customer sell orders. Sometimes, multiple quote movement requests were made if there were more than one dealer on the inside bid or ask.