Actually I am kind of confused with how it works right now because I have not seen it in action. From what I get from reading the SEC notes is that what the liquidity quote posts on the bid is the aggregation of all the bids from the highest inside bid down to the liquidity quote. So if 36 500 35.95 500 then 35.90 where the liquidity quote might show 10500 comprised of 9500 at 35.90 plus the 1000 shares from the higer prices. I think it is going to be used to more easily faciliate larger blocks to make up for the difficulties of getting large blocks done because of decimals. Now the bad side of all this looks like for the trader who tries and gets price improvement by putting bids and offers out. It looks like if you are willing to cross the market you might get better treatment or better treatment with market orders. Currently a market order can get stuck in your ass as the bitch gaps it down and fills you then moves his quote back up. Supposedly this same market order will now hit all the limit orders that are in the book all the way down. To me it sounds similar to putting in a SOES market order on nasdaq in theory. However what is bad is that if you have bids or offers out that he will not be batching all the orders in one print at the low price. From what I understand if the liquidity quote is at 35.90 and you have a bid at 35.95 then you will be filled at 35.95 and the rest of the order will be filled at 35.90 instead of now where you have the potential to get filled in a batched order at 35.90. This is my understanding of the new rule. I wonder how it will effect those who use strategies like enveloping orders or who try to get in on prints for large gap up or downs. What I am not clear on is what happens when the specialist goes to 1X1 if the liquidity quote is still shown or not. Also I am not totally clear on the effects of trading and price improvement for people putting bids and offers out during abnormal gaps to facilitate cleanup orders at the end of moves. Any comments from those with more info on the subject would be great. Also comments from firm owners such as Don Bright would be great too.