Anyone knows what MM/specialist can see on their level 2 or trading system?What's their privilege or advantage over us general day traders? Thanks
Since you say "specialist," I assume you refer to on the NYSE. The answer is: not much else that you can't. They get to match orders when automatic execution gets turned off, after a quick price spike in one direction, and in that spot they can see the market orders, and print them all in one block print, and perhaps even take the other side. They can also see the "specialist reserve," where they can post size that gets hit by NYS market orders even though no one else can see it. The more important book is the floor broker reserve book, which only the floor brokers can see. Floor brokers have more of a use than specialists do, now.
On NYSE a specialist can see the reserved size posted by a floor broker. The reserved size (and the specialist interest) is not a part of Level I/OpenBook.
Thanks for all of you guys' reply. By the wayCan MM/specialists tell the difference of short orders and sell orders on their trading system?Can they know where those orders on level 2 are from?If they can,they can easily beat us day traders.
Thanks for all of you guys's reply. By the way,can MM/Specialists tell the difference of short orders and sell orders on their trading system?Can they konw where those orders come from ?If they can ,they can easily beat us day traders.and we'd better try to follow MM/specialists.Do you agree?
Before the uptick rule, anyone could see the difference... now, there is no difference, for all intensive purposes. They can see ECN/MM ids just as we all can. No advantage to "mms/specialists".