Article on Market Maker

[harrytrader]

also on Sec:
http://www.sec.gov/rules/proposed/34-42259.htm

"It is no secret that companies wield restriction of access as a weapon against analysts who issue a negative research report on their stock. Retribution ranges from refusing the analyst's calls for information, to barring the analysts from mailings, conference calls, and meetings, and even <font color=red>threats of </font> legal action and <font color=red>physical harm.</font>"

Quote from harrytrader:

Yes responsability to make an orderly market but within FAIRNESS CRITERIA.

So come down on earth if you ignore certain reality under the pretext of conspiracy I suppose that you will treat this again as conspiracy:

" d. Pressure and Harassment

Various Nasdaq market makers have exerted pressure on market
makers who acted inconsistently with the above-described trading
conventions, narrowing the inside spread, and consequently
reducing the profits of all other market makers in the stock.
The investigation has developed evidence of instances where
market makers entered quotes that narrowed the inside spread in
contravention of established trading and pricing practices and
then were the subject of harassing telephone calls. "


I hope the source is reputable enough: it's the SEC
http://www.sec.gov/litigation/investreport/nd21a-appx.txt

 

[Ikspec]

Quote from Pabst:

Not true per se'. After all purchasing a seat does not in its self allow the member to be a Specialist. Most seat buyers are firms who use the seats for member rates. A NYSE seat is trading at around 2 million. Not cheap yet not expensive when you consider a 2 bedroom condo in a drab post-war building Uptown goes for the same. Jeez a NY Merc seat is close to that. All for the right to stand in the energy pits!

Speaking of which, how are the locals in the energy pits doing these days? If past experience is any guide, markets without a lot of transparency (screen access etc.) tend to be very good to locals and last I heard the energy markets weren't very transparent.

They launched mini-crude a while ago but last I looked at it (which is admittedly a very long time ago), there was hardly any volume. Is there something comparable to globex for the energy pits?

 

[maxpi]

Quote from Pabst:

The Ney book that's the basis for that article was published in the 1960's! Rules and Regs have changed dramaticly since. Not to mention the trading landscape. Back then few funds, no futures related programs, 1/8 commissions, no ECN's, no prop guys banding orders. SO apples and oranges!!

Yes and about all Ney did in his "expose" book was to publish some charts and then make hypothesis' about what insiders (company leadership) were doing. I don't think he proved anything at all. Ney's stuff is right up there with other conspiracy theories.

Max