Those annoying LSPD "traders"

Originally posted by bungrider
anyone noticed that LSPD seems to cater to the last of the momentum traders??

personally i find that whoever uses LSPD in some of the naz stocks i trade to be extremely annoying, but i have a bias against pegged orders, and that seems to be the only order type LSPD traders seem to use.

ever notice that just about any naz stock will have an after hours bid for 0.01 from LSPD? do they really think anyone will sell to them at that price? seems totally like a lightspeed kinda thing to do...besides, i don't think it's permitted to allow market orders in extended hours trading anyway, making the 0.01 bid beyond retarded....pointless at best...

the really stupid thing about those 0.01 bids is that they are only for 100sh, and if somebody who didn't know any better decided to sell to LSPD at that price, the trade would net the seller $1.00 (100sh X 0.01). considering the fact that anyone dumb enough to sell to the LSPD schmuck at that price probably trades thru datek, etrade, schwab, etc - why would anyone pay a $10-15 ticket to net $1.00 on the sale??? apparently many LSPD traders lack brains. the upside is that by trading against them you might put the odds in your favor. at least that's been my experience. if LSPD shows up and pegs the bid, chances are the move is just about over.
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Nasdaq market makers aren't required to honor their quotes beyond regular market hours anyway. Maybe they automatically set their quotes to ridiculous values at the extremes at market close, "just in case".
 
I didnt know those #$%^&@'s (edited by moderator) honered their quotes during regular hours! lately iv e been noticing they are getting away with displaying 1 lots with more behind!!! have you seen it?
 
LSPD traders were hired to wash stock for tradescape's ECN. If you notice all they do is short stocks and cover at the same price. They receive a $3.50 rebate for every 1000 shares that they move. Tradescape then charges the unlucky victim who hits them $10.00. This illegal activity is so obvious to anyone that trades, it makes you think how incompetent (or corrupt) the NASD must be. As long as you generate Supersoes fees you can do anything you want.
 
How can you short stocks and cover at the same price all day long unless:

A. The bid and ask are the same

or

B. You can correctly guess where the stock is going every time

None of the above can be true, no matter how liquid the stock is. Unless you are an equity prognosticator supreme.

LSPD traders use it for the rebate and also because it's very efficient. Just because some traders trade market stocks for large size doesn't make them crooks.
 
By the way, the rebate is definitely NOT $3.50 per 1000 shares. Otherwise I'd do it all day long too!


1.   MarketXT Transaction Fees

Shares per Month $/Share

1 - 5,000,000 0.0075

5,000,001 - 50,000,000 0.005

50,000,001 + 0.003



Liquidity-provider rebate:

Shares Liquidity Added
per Month $/Share

0 - 50,000,000 0.001

50,000,001 + 0.002

New liquidity provider rebate schedule effective 6/1/02
 
Originally posted by chisox
I didnt know those #$%^&@'s (edited by moderator) honered their quotes during regular hours! lately iv e been noticing they are getting away with displaying 1 lots with more behind!!! have you seen it?
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A couple weeks ago,Nasdaq changed the rule that MM's had to display 1000 shares to use the reserve size feature.Now they can only display 100 shares to use the reserve size feature.
 
Actually, this really isn't such a biggie (I'm referring to the displaying 100sh rule). MM's are free to use ISLD or any other ECN, and there they can use a reserve size of 100sh. At first I thought the change was pretty lame, but its only fair for them to do it if we can, too.
 
I really wanted to see if someone could do some sluething and figure it out. No one told me, I garnered the ugly truth from my compulsive web surfing.

Let's see who has the right stuff..............................
 
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