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Non-Tech : Ashton Technology (ASTN) -- Ignore unavailable to you. Want to Upgrade?

To: wily who wrote (850)	5/9/1999 8:23:00 AM
From: Randy Elder	Read Replies (1) \| Respond to of 4443

wily: I can think of two big differences from paying for order flow. First, in the VWAP system there is an added element of risk that is not present when one knows the price of the shares traded. Second when a MM pays for order flow they are generally getting the more advantageous of the bid or ask prices, whereas the VWAP system results in a neutral price with no inherent spread. From a pure bargaining standpoint, who needs the added liquidity more? ASTN with their need for a viable system and the locking in of a profit they would otherwise lose, or the BD?