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They do if the price is below the NY bid. someone who monitors those trades would
be on the phone to the SEC in a minute. As far as the specialists action. He can
sell the book down to the cross price and and take a piece. That is the
negotiation. How much. Ira
"Norman E. Phair" wrote:
> Ira:
>
> Your example is a little different from what we were talking about.
> This happens routinely throughout the day because institutions control over 80%
> of the
> stock market activity. The last rule that I am familiar with, and it has
> been a few years since
> i was involved in this area, is that the seller hits the first bid and all
> orders under that bid and
> down to the cross price get the lower price. I>E> the stock is 40 bid, the
> seller gets the execution
> on what is bid at 40 and them crosses the balance of the order at say 39, the
> public orders between
> 39 1/8 ad 39 7/8 get 39. The reason for crossing on a regional exchange is
> that
> the specialist wants more of a piece than the buyer wants to give up. Usually
> if this is the case, they negotiate
> because the specialist knows that the block can trade away. They do not have
> to wait until NY closes to
> do the trade on the PSE.
>
> Norman E.
>
> Ira wrote:
>
> > They do run the market in stocks and here is an example. A large mutual
> > fund comes in with an order to sell, we will use 10,000 share block. They
> > find another firm to take the other side. they go to the specialist and ask
> > where they can cross the block. the specialist looks in his book and says
> > at x down a point, but I want 1500 shares of the trade. those 1500 shares
> > are in his book between the current price and the execution price. Is that
> > fair to those in the book? Is it fair to the public? Is it done? Yes, all
> > the time. If they can't accommodate the trade in NY, they wait for the close
> > and execute the trade on the PSE which closes 15 minutes later. Have a good
> > week end. Ira.
> >
> > Don Roos wrote:
> >
> > > <<I have been a trader for two mutual fund companies and it does not
> > > work in stocks
> > > and I doubt very much if it will work in commodities. If you can show
> > > me
> > > proof that it does I will listen.>>
> > >
> > > We all know of your incredible impeccable credentials, Norman. (How
> > > could we not know). If I proved it to you, then you would have to quit
> > > your piranha anonymous group.
> > >
> > > Stocks have the specialists at NY who are not allowed to push the market
> > > like the locals do. They take the opposite side to create liquidity.
> > > The locals create moves in an effort to pick off all the "suckers" that
> > > have signed up to trade in "their" pit. To them, if someone leaves a
> > > stop, it is their "right" to pick it, because such a person "is a loser"
> > > anyway. (I've heard them talk this way in the background on LOS). But
> > > this is part of the game, as we know it at this time.
> > >
> > > We are all fortunate that Norman didn't buy a seat at 12.5k, or he might
> > > be likely to brag a little.
> > >
> > > Don
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