I agree with Mike. I unsubscribed on page 20 something and just clicked on tonight to see what was happening. God Almighty is Right !!! Maybe I can interject something positive here before I unsubscribe again. Check out the current issue of Business Week (March 6). You will find, on page 70, a story on how the new NYSE CEO, John Thain, plans to revitalize the exchange with the Archipelago deal. In this article he admits that the NYSE will close the door on the exchange's "private club" structure. He says that he convinced specialist firms (There are only 7 of them) to accept a new trading system that will shrink their roles sharply if not render them obsolete. The article states there will be three ways to trade. 1) continue to use the specialist, 2) use the NYSE 'new' high speed computers for instant matching, or, 3) send to ArcaEx, which for now will operate separately from NYSE's. Here is my take - it will not make one bit of difference! Contrary to most of the posts here, the specialist makes the really big money not by 'stealing' a few nickels and dimes (or $158 million if you measure by the SEC's settlement), but by holding millions of shares long or short because they "know" where the stock is going in the intermediate term. Then, when there are large order imbalances they "stand ready to buy stocks and stop erratic plunges" etc..etc..etc! I say BS! Those large order imbalances give them the opportunity to open stocks at whatever level they want to that will give them maximum profits if they are short, or small losses if they are long. Just my .02
wabrew, I hope you will try reading through the entire part of the thread you missed. I think you will find some valuable info interspersed throughout the, well, other stuff.
I have been told by a number of people in the know, and I think Don mentioned it here several times as well, that the specialists actually carry very little if any inventory overnight. They are basically daytraders like most here.
Perhaps some impartial, unbiased person could generously take the time to post a summary highlighting that valuable info. It would serve the thread well.
As you wish, kowboy. Here it goes, just for you! The facts as I see them are that a floorbroker cannot jump in front of Dan's order as Rockford stated here today. Dan's order was on the book and was already partially filled. As per Dan, after he got partially filled on his short, another 200k sell order came on the book and was filled ahead of Dan's remaining shares. Here is Dan's exact post: Here was Rockford's response on that day: When I pointed out to Rockford that he was mistaken, as I stated above, his thirty page tirade began.
Hamlet, If the facts are as Dan posted, that he got a partial fill, then after or during his partial fill, the 200k was posted on the offer and prints were going off on the offer at his same price, why did Dan not get a total fill? Since Dan was there first? Thanks
I don't think that is correct as far as overnight position go, but I am hopeful to hear other opinions on this.
This is open to debate, but my immediate statement was that the 200k seller was given priority because he was a long seller while Dan was a short seller. It is also open to debate it seems, as to whether longs are given or are supposed to be given priority in some or any circumstances. We have had some conflicting opinions on this here. Myself, Rubberbird, and the moderator have stated that they believe it is true, while ctsu said that it is not. My own and Rubberbird's statement's were made based on our own personal experiences of this being the case. It seems the jury is still out, but I expect the truth will come out of this either way (that is, if Rockford does not have his way with censorship).