Who operates the sophisticated Level 2 bid/ask?

Discussion in 'Trading' started by Option Trader, Jul 15, 2008.

  1. Sometimes you get the feeling from the way the Level 2 bid & ask is working, that you better just get out of the way, as it seems someone is determined to move the stock in a particular direction; e.g. you see the level 2 exchanges work in conjunction with one another and taking its direction.

    For NYSE stocks, is the only candidate the specialist--who is also the MM? Or are there other candidates (e.g. institutional shorts)?