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----- Original Message -----
From: <Sigstroker@xxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Sunday, April 23, 2000 11:19 PM
Subject: Re: ISLAND and Stocks
> In a message dated 4/23/00 4:41:36 PM Pacific Daylight Time,
> elangley@xxxxxxxxxxx writes:
>
> > Island basically lets you trade with other day traders. But if a market
> > maker is holding down the market you can get stuck in a position for
the
> > following reason;
> >
> > A market maker can post a price to sell at and basically ignore you for
> > several minutes. That means that you have to "ask" someone with a
higher
> > price to sell to you. It is NOT automatic.
>
> Huh? If you are talking about buying at a market maker's offer, most ISLD
> brokers will not let you cross or lock the market. Why would you use ISLD
for
> that anyway? An order placed through Datek in that manner would not go
> through ISLD, but through Selectnet. ISLD is arguably the most liquid ECN
> there is.
My point is that Selectnet is NOT automatic. You are not guaranteed a fill.
You are basically negotiating with the market maker to sell to you, and they
do not HAVE to. Yes ISLD is liquid, but it is not always represented as the
best BID/ASK price.
You can buy on ISLD above the market price simply by entering a BUY at
MKT order on ISLD. You will get filled at the best available ISLD price(s).
>
> > If there are no ISLAND offers to sell near the current bid/offer if can
be
> > very difficult to exit a position. Unlike say the E-mini that always
has a
> > bid/offer price that is valid and WILL execute.
>
> I'm not aware of any brokers that use ISLD exclusively. If there are no
ISLD
> bids/offers on the inside, use Selectnet, SOES, or whatever.
Read my above comments. SOES was a waste of time for me. I hardly ever got
filled with it.
>
> > Just about all of the good day trading firms such as Cyber Corp (the
one
> > that i used) and most the the others such as Datek etc.. access ISLAND
> >
> > The market makers in the NYSE are concerned that if ISLAND can certify
> > itself as an exchange (they want to) it can most certainly grab a good
junk
> > of volume from the NYSE.
>
> My understanding is that some listed stocks are traded pre and post market
on
> ISLD.
Not during the day. I don't trade stocks anymore so I'm not sure about the
aftermarket.
>
> > Take AOL. If AOL could trade on ISLAND I would imagine that most day
> traders
> > would do so. With SDOT (the current NYSE electronic system) you are
> > basically blind.
> >
> > One thing that I like about ISLAND that could be used in the E-mini:
> >
> > Open Book - The open book allows you to see ALL of the limit and stop
> orders
> > that are resting outside the bid and ask.
> > This kind of transparency would help the trader in e-mini's make
sure
> > that there are contracts available to buy or sell outside the current
> > bid/ask.
>
> I've never seen stop orders in the ISLD book.
True, they are all limit orders. But they may be someones stop order.
>
> > From what I hear this is being worked on for the e-mini.
> >
> > What I would give my left finger for though is to be able to have TS
orders
> > automatically execute on the e-mini contracts. That would eliminate the
> > delays in manually
> > entering order information when the price is getting away from your
orginal
> > signal price!
>
> Careful what you wish for, they might be calling you "9 finger". If TS has
> OLE or ActiveX, etc. somebody could cook up such a thing.
>
It is supposedly under development.
I look forward to that day.
Eric
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