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> ----- Original Message -----
> From: <Sigstroker@xxxxxxx>
> To: <omega-list@xxxxxxxxxx>
> Sent: Monday, April 24, 2000 10:01 PM
> Subject: Re: ISLAND and Stocks
>
>
> > In a message dated 4/24/00 6:27:28 PM Pacific Daylight Time,
> b.c.w@xxxxxxxx
> > writes:
> >
> > > > 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.
> >
> > No, you have your terminology mixed up. The inside offer IS the ask, and
> > bidding above or at that price crosses or locks the market and is not
> allowed
> > on most ISLD systems.
>
Not that this really matters to me... But you can "bid" higher than the
lowest offer.
You do this by entering a price above the low offer on ISLD. If there are
shares there
you will get them. Thats all there is to it.
What you CAN NOT do is have your price represented as the "best bid", since
that would
be higher than the "best offer" which would cross the market. In my opinion
you should be
able to cross the market. That would really put an end to the market maker
games of holding
down the price when they refuse to fill orders at the price and size that
they are displaying.
They simply have too much time in which to refuse to fill orders, basically
minutes, not seconds.
eric
> >
> > >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!!!).
> >
> > That's only on Datek market orders, which is Selectnet broadcast if ISLD
> is
> > not on the inside. Besides, Datek refunds order flow payments to the
> customer.
> >
> >
>
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