looks like the MM's finally had their way...http://nasdaqtrader.com/trader/news/2002/headtraderalerts/hta2002-60.stm
Supersoes Reserve Size Display Requirement
- Thread starter Vinny1
- Start date
I am shocked at your attitudes. I am sure NASDAQ was acting to enhance the efficiency of the market. And you may be forgetting the SEC is there to protect the integrity of the markets and the individual investor. I hope I cleared that up for you.
Real reason...MM's didn't want to show 1000 shares since that way you would know that they had a reserve;with 100 shares,it'll be a little harder to tell who has a reserve and who doesn't.When Supermontage comes out,the MM's will have one more tool to use to their benefit,and that is their ability to use SIZE(as opposed to their own identifier) to show their bids and offers. My guess is that Nasdaq allowed this feature to try to get some business away from the ECN's; so MM's would stop using the ECN's to hide their identity and use SIZE instead.Personally,i don't know why sometimes MM's use their own identifier or SIZE(once Supermontage rolls out)to display their orders,since Nasdaq rebates them .001 per share for providing liquidity,while ISLD rebates .0011 per share and INCA rebates .002 per share for providing liquidity.How perfect the Nasdaq market would be if everything traded only on ISLD.
