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In a message dated 98-08-27 20:17:19 EDT, Robertbu@xxxxxxxxxxxxx writes:
> Within the context of the SOES system I used last year, an ECN was
> an method of placing my shares up for sale. There were about eight
> of them. The two I remember were ISLAND and BLOOMBERG. By
> using an ECN I could attempt to sell my shares at the ASK or
> buy shares at the BID, or I could buy/sell in the spread and become
> the inside market. From a Level II point of view, my order looked
> like a market maker and in a way I was competing with the the MMs.
You can now do this with any brokerage. They are required to either fill your
order or represent it in the open market.
> There are a couple of problems with using many of the ECNs. The
> first is that if you received a partial fill, the rest of the order was
> canceled and you had to resubmit the order. For example, imagine
> a fairly volatile market and you place your shares up for sale with
> an ECN timing the move perfectly only to have 100 of your 1000
> taken and now be holding 900 shares as the market moves against
> you. By the time you get out of the remaining 900 shares you might
> have lost a point or more.
A fast moving market has that effect on any broker. If there are no buyers (or
sellers) at your price, no brokerage is going to fill you.
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