more fees, more room for goldmine and friends to manipulate.. forget it...The irony is that the l2 is a mirage as it is and the computerized scalping will still be there
It's a pure monopoly. Personally, I am afraid that I am forced to route my orders to one central place of execution. What if I want to GET OUT in a fast mkt. How dare you reject my orders. Personally, I feel they could be held liable for rejecting my orders. If they are clearly erroneous, that's one thing, but if it is a forced out to make sure I am out, don't get in my way. I sincerely hope ECN's break free and put them out of business. Traders are loosing options and are being forced to trade through Nasdaq! Not good.
This means no limit orders? Sounds strange to me. I know that some ecn's don't take market orders, and that makes a certain degree of sense, but not this. Are you sure?
I just finished reading through some Q&A stuff on the nasdaq site regarding SuperMontage. I'm not sure I like the idea of market makers being able to use the SIZE ID. If I read it correctly multiple market makers will be able to bid and offer under the size ID thus keeping their anonymity. I think this is going to take some getting used to. Another reason to trade listed? Leland
Lots of paranoia about SM. Let's see what it looks like and then we can decide if going back to flipping burgers makes more sense.
Size identifier..... MMs also use ECNs now, and can have a reserve on some of them. When they do this, we dont know who they are. So the SIZE thing sucks, but its not THAT big a deal. I think that anyone can have a reserve may ruin some faster moving stocks though...
I am not sure what all the fear is about? It is simply an improvement on what already exists. You cannot trade between the marks on SuperSoes or SNET... and it continues that way on SM. It offers a one stop shopping for Nasdaq instead of using SuperSoes for market makers and SNET for ECNs. It also, keeps the SNET alive under a new name "Directed Orders" Via a Direct Order you will be able to access Liqidity Tracker. This send your order to the market maket who last took an opposing position in that security. It can only be better than what exists today. ECNs are not forced to join but almost certainly they all will. This does not mean you cannot post your orders on an ECN. It will show aggregate price levels 5 prices below. But there are 4 different quote levels available. Basically, when you want to hit the bid or offer, it will be your quickest fill. Although, inherently expensive. Hope this helps calm the nerves a bit...