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> Subject: Re: ISLAND and Stocks
> Date: Sun, 23 Apr 2000 23:19:13 EDT
> From: Sigstroker@xxxxxxx
> To: omega-list@xxxxxxxxxx
>
> 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.
>
I believe you have your terminology mixed up. There is nothing preventing you from
bidding above the current inside offer. This does NOT constitute a cross/locked
market. A crossed market (ie. crossed down occurs when the the ASK price in a
private network (ie.Instinet) is lower than the BID in a public network (ie. ISLD,
NASDAQ). A bid above the current inside offer on the same network does not
constitute a locked/crossed market. I believe any order placed thru Datek gets
routed to the best market, whether that happens to be ISLD, or Selectnet (DATEK GETS
PAID FOR ORDER FLOW!!!). And SelectNet orders are NOT mandatory, even if you
preference Market Makers (ever wonder why when you buy stocks using DATEK you get
almost instantaneous execution but when you want to exit it takes an awful long
time, even for a market order)
>
> I've never seen stop orders in the ISLD book.
>
>
And you will never see any stop orders on any Nasdaq network.
>
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