Nasdaq & NYSE different universe?

Discussion in 'Trading' started by wyang, May 10, 2005.

  1.  
    #31     May 16, 2005
  2. I think you need to do a lot more research on how the HALT works. It's free money for the floor that is ripped off the small investor. There is nothing beneficial to mom & pop when the price gaps down 10% instead of a steady sell off.

    Your views are extremely biased, I think at first you need to get it through your head that (a) the specialist is not your friend (b) when the retail money is gone, the specialist will screw you whether you're right & wrong (c) recent events should have given you a clue about how the market feels about specialists.

    The NYSE vs Naz argument is pointless when NYSE is going more & more electronic by the day.
     
    #32     May 16, 2005
  3. So if there were no halt, Joe Schmoe's buy limit at 40.50 should be hit when the stock comes out with horrible news while trading at 41.5?? So everyone trading on the floor and at home should be able to pick off all the avg Joe's in their factories, shops, cabs or cubicles and sell to all their limit buys that were placed in the morning when things were very different? I think you should get it through your head that the halt protects average Joes and Janes who have outstanding limit orders. And I never implied the specialist was my friend, but rather that the specialist, when current regs are enforced (as they are for the most part now, even though most people on ET like to blame the specs for their bad trading) provide a better system, especially for mid and small cap stocks (and even the smaller big cap stocks).
     
    #33     May 16, 2005
  4. If it is that ez money why don't you put an order at the open and get the opening print since it gaps so far down and it is obvious that it will go back up because the specialist has to make money? It's soooo ez!!!!!!!!!!$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
    daaaaaaaaa!!!! Why don't we all do that?????

    LOL




    :confused: :confused:
     
    #34     May 17, 2005
  5. Ok, A specialist's job is to ensure there's an orderly and efficient market, yet he's allowed to trade his own account from his own inventory after seeing all the orders, big and small. Are you people kidding me? That's like asking a bank robber to be the lead detective in the bank robbery division. It doesn't take a rocket scientist to see the obvious conflict of interest here. Is that clear????? CRYSTAL!!!
     
    #35     May 17, 2005
  6. He also has to create a market when nobody else will step in (buy when nobody else will, sell when nobody else will). And no, he doesn't see ALL orders. You think the institutions tell the specialist their ENTIRE buy and sell orders, at least the big ones? So sometimes a specialist buys a big block to keep a market orderly, only to have the institution throw another big block, and another, etc. Oh, and by the way, there are rules about when the specialist can buy or sell. If there are market sells and buys, the specialist has to match the orders. If there is a sell order (limit or market), the specialist can't involve himself unless he's giving a price improvement over existing buy limits (and he has to fill market orders first). This is an advantage for sellers (getting a better price), although it ticks off some traders, including me sometimes, with outstanding buy limit orders (yet these traders, including me sometimes, don't always consider how often they actually jump in front of the specialists). The specialist system has long been the best system, and the only serious flaws have been that existing rules weren't always enforced (which has been, at least in part, addressed recently). Meanwhile, MMs still back away often on the Naz, where there is far less accountability (and it is much harder to keep track of all the MMs).
     
    #36     May 17, 2005
  7. MM's on naz? You see one , let me know.
     
    #37     May 17, 2005
  8. MM, wuz that? Wasn't that around in the 90's? :D :D






     
    #38     May 17, 2005
  9. The fact of the matter is that he "must" trade his own account and make markets at all times when there are no live orders. When I was a market maker on the options floor, the "new" rules came into effect that we "had" to be good for a minimum of 10 contracts on every striking price, whether we were long, short, or neutral. With over 100 striking prices on the options, we often had to buy stuff we didn't want, and yes, even lose money on them.

    OTC mm's (yes, they do exist, with big firms) don't have similar requirements, and have all the public "order flow" to trade off of...and they don't have to trade at all. Neither system is perfect, but I would rather go with the guy who has to at least take "some" risk at times.

    Don
     
    #39     May 17, 2005
  10. In my opinion anybody who knocks the open outcry system has never traded size in thin names. Trading thin NY stocks are a pleasure compared to issues of the same daily avg vol on the Naz. I have had the spec flash me size when he knows I am trying to do something..I shit you not. When they see your ID popup over and over all day on the same side they will accommodate(not talking about flipping dimes here). But try and tip your hand slightly on the Naz to find a contra party and your fuxxed......you get 25 rats heading for the same hole.
     
    #40     May 17, 2005