How's everybody doing. I trade on the nasdaq. This question has plagued me for the longest time, and I was wondering if any of you had any insight on the matter. Alot of stocks do some serious volume on the nasdaq every single day, but alot of the volume is fictitious. A few examples... JDSU, SIRI, SUNW, ADCT... Every now and then, a volume surge kicks in, and the stock proceeds to clear the bid/offer repeatedly, at the same price level, usually for a very short period of time. Prior to size becoming anonymous, one could see the same MMID smacking both the bid, and then the newly created offer. I've formulated a theory that they do this to catch a trader in an unfavorable position, but, what else could it be for? Do Market Makers get credited for generating these high volumes even if the stock isn't going anywhere? Does this kind of behavior happen on the NYSE, or is it restricted to the nasdaq? Some rebate traders profit tremendously from these discrepencies, and I assume someone has to pay out some fees somewhere down the line. So why do it? Is the reward for generating higher volume worth losing tens of thousands of dollars in ECN fees? Let me know what you guys think.