Market maker plays games.

Discussion in 'Order Execution' started by Option Trader, Mar 19, 2008.

  1. What if he had specified "ALL OR NONE" in the order ?
     
    #21     Mar 26, 2008
  2. Egodude

    Egodude

    This thread is a little ridiculous. Was this your first day trading?

    First there is no market maker on an NYSE stock. Market makers are for Nasdaq. There may have been a specialist, but the issue was probably not caused by a market maker.

    A day order is cancelled at the close. There are many reasons why the stock may have closed lower.

    I dont particularly like Ameritrade as a broker, but I hardly think there was a conspiracy against your order.
     
    #22     Mar 26, 2008
  3. BigEgoDude,
    My point has to do with those big lot trades which often occur at the close, which anyway seem a bit fishy, seems even more fishy if they are able to ignore the other bids.

    (Note: More precisely the specialist is the market maker.)
     
    #23     Mar 26, 2008
  4. Even a better example:
    See what happened with WHI yesterday.
    The stock was trading at $1.13 and $1.14 for a long time, andfinally broke thru to $1.14 & 1.15 by the close. But "somehow" the stock closed at $1.22--I can't even see a corresponding trade on the chart!!
    Of course, after hours, the bid & ask reverted back to the $1.14 range.
    Here, there is no room for alternative explanations about what happened.
     
    #24     Apr 2, 2008
  5. Those aren't fishy, those are the closing prints, which you yourself can be included on if you submit before 3:59:50 a market-on-close or limit-on-close order.
     
    #25     Apr 2, 2008
  6. For granted that can happen--but after seeing what happened with WHI, I also believe there are "other things" that happen as well.
     
    #26     Apr 2, 2008
  7. Another "miracle" close for WHI.
     
    #27     Apr 2, 2008
  8. Code:
    ...
    ...
    15:59:59  1.19 x 1.20  272 x 91   
    16:03:01  1.19 x 1.20  272 x 91  C/C 
    16:05:42  20s1.19  @
    16:05:42  1.19 x 1.20  252 x 91  C/C 
    16:44:17  1.19 x 1.20  1 x 1  C/C 
    16:45:53  1.19 x 1.20  1 x 1  C/C 
    
    
    It appeared that there were no buy MOC orders, so the specialist executed sell 2000 against the bid @1.19
     
    #28     Apr 2, 2008
  9. After further review, you're right, this was not an example of the syndrom I was trying to show. However, yesterday's close with WHI definitely was.
     
    #29     Apr 2, 2008
  10. Here is the tape for yesterday's close:

    Code:
    ...
    15:59:54  1.14 x 1.15  958 x 95   
    16:00:00  1.14 x 1.15  977 x 95   
    16:03:03  1.14 x 1.15  977 x 95  C/C 
    16:04:42  60s1.22  @
    16:04:42  1.14 x 1.23  977 x 10  C/C 
    16:04:45  274s1.22 L
    
    Interesting, the imbalance print was 6000 shares with 9500 offering @1.15, but the closing price was 1.22, so it appeared that the offer (or almost all it's quantity) was canceled and the imbalance print swept the book up to 1.23
     
    #30     Apr 2, 2008