Sebenernya yg sejenis "level II" screen dia RTI Terminal, Ipot, dll juga ada, cuma bedanya siapa yang pasang BID & Offer ngga ketauan.., setelah done baru kita bisa tau..., dulu pernah ada wacana kode broker mau dihilangkan, padahal di Amerika kita bisa dengan jelas melihat siapa yg pasang BID & OFFER lewat level II screen..., mestinya disini juga dibikin kayak gitu..., baru sip.
JsxTrader --- In obrolan-bandar@yahoogroups.com, "tirta858" <tirta...@...> wrote: > > Di Indonesia, Quotenya level berapa yah buat bandar since RTI dan > IQPlus etc cuma Level 1 :P > > > > > > > > > --- In obrolan-bandar@yahoogroups.com, "tirta858" <tirta858@> > wrote: > > > > www.investopedia.com/university/electronictrading/trading8.asp > > > > Specialist see not the Level 2 but Level 3 Quote. > > > > There are a variety of ways in which Nasdaq quotes security prices > to > > the public. These levels vary on the amount of information and > access > > they provide to investors. > > > > > > Level I > > This type of quote is most often published on the net as a "real- > time > > quote." Level I consists of real-time bid/ask quotes for securities > > trading on the Nasdaq stock market. This type of access does not > > disclose who is bidding or asking for the stock, and it does not > show > > how many shares the market maker is looking for. Real-time quotes > > show the current quote, but it may be from a different lot than > what > > you are trading. Market makers love clients with this type of > access > > because it doesn't show you the order sizes, and therefore your > order > > may be passed around or held until market makers can profit from > your > > order. > > > > Level II > > This type of quotation system is a step up from the Level I. Level > II > > access provides real-time access to the quotations of individual > > market makers registered in every Nasdaq-listed security as well as > > the offering or bidding lots that they are looking for. This level > of > > access also gives the name of the market maker looking to trade the > > stock. It allows traders to see what market makers are showing the > > most interest in a stock and to identify the patterns for each > market > > maker. Level II access is available over the internet - but at a > > cost. This can range in the hundreds of dollars per month depending > > on the company. For clients placing a large number of trades, the > > firm may waive the access fee because they will make up the costs > on > > your commissions. > > > > Level III > > This is a trading service consisting of everything in Level II plus > > the ability to enter quotes, execute orders and send information. > > This service is restricted to NASD member firms that function as > > registered market makers. Level III allows you to enter bid/ask > > quotes as the trades are being executed right in front of you. It > is > > the fastest way to execute a trade and is typically found only on > the > > trading floors of brokerage firms and market makers. > > > > 1. The Specialist : > > > > > > What's the difference between a Nasdaq market maker and a NYSE > > specialist? > > > > ------------------------------------------------------------------ -- > -- > > ---------- > > > > What's the main difference between a specialist and a market maker? > > Not much. Both the New York Stock Exchange (NYSE) specialist and > the > > Nasdaq market maker try to increase the liquidity on the exchange > and > > provide more fluid and efficient trading. > > > > > > A specialist is a dealer representing a NYSE specialist firm - one > of > > the main facilitators of trade on the exchange. A market maker is a > > broker-dealer who facilitates the trading of shares by posting bid > > and ask prices along with maintaining an inventory of shares. It is > > important to note that a specialist is a type of market maker. The > > NYSE has seven specialist firms while the Nasdaq has nearly 300 > > market makers. The NYSE is an auction-based market where traders > meet > > on the floor of the exchange, using person-to-person, telephone > > orders or electronic orders. The Nasdaq, on the other hand, is > > strictly an electronic exchange. > > > > NYSE > > Specialists working on the NYSE have four roles to fulfill in order > > to ensure a fair and orderly market: > > > > Auctioneer - because the NYSE is an auction market, bids and asks > are > > competitively forwarded by investors. These bids and asks must be > > posted for the entire market to see to make certain that the best > > price is always maintained. It is the job of the specialist to > ensure > > that all bids and asks are reported in an accurate and timely > manner, > > that all marketable trades are executed and that order is > maintained > > on the floor. Along with posting the daily bid and ask prices, the > > specialist must also set the opening price for the stock every > > morning. This price can greatly differ from the previous day's > > closing price based on after-hours news and events. The role of the > > specialist is to find the correct market price based on supply and > > demand. > > > > Agent - the specialist can also accept limit orders relayed by > > investors through brokers or electronic trading. It is the > > responsibility of the specialist to ensure the order is transacted > > appropriately on behalf of others, using the same fiduciary care as > > the brokers themselves once the price of the stock has reached the > > limit criteria. > > > > Catalyst - as the specialists are in direct contact with the > bidders > > and sellers of particular securities, it is their responsibility > that > > enough interest exists for a particular stock. This is carried out > by > > specialists seeking out recently active investors in cases where > the > > bids and asks can't be matched. This aspect of the specialist's job > > helps to induce trades that may not of happened if the specialist > had > > not been there to bring buyers and sellers together. > > > > Principal - in the instance where there's a demand-supply imbalance > > of a particular security, the market maker must make adjustments by > > purchasing and selling out of his/her own inventory to equalize the > > market. If the market is in a buying frenzy the specialist will > > provide shares from their inventory until the price is stabilized. > > They'll also buy shares for their inventory in the event of a large > > selloff. > > > > Nasdaq > > Market makers working on the Nasdaq exchange are actually not at > the > > exchange. They are large investment companies which buy and sell > > securities through an electronic network. These market makers > > maintain inventories and buy and sell stocks from their inventories > > to individual customers and other dealers. > > > > Each market maker on the Nasdaq is required to give a two-sided > > quote, meaning they must state a firm bid price and a firm ask > price > > that they are willing to honor. > > > > Each security on the Nasdaq generally has more than one market > maker, > > with an average of 14 market makers for each stock which provides > > liquidity and efficient trading. The market makers are openly > > competitive amongst themselves and facilitate competitive prices; > as > > a result, individual investors generally will get the best price. > As > > this competition is evident in the limited spreads between posted > > bids and asks, the market makers on the Nasdaq will in some > instances > > act very much like the specialists on the NYSE. > > > > "Negative Obligation" "Bagged" > > > > 2.THE Specialist: > > > > Well-deserved attention has been focused on the $140 million > > compensation package received by Richard Grasso, the recently > > departed chairman of the New York Stock Exchange. Undoubtedly there > > will now be significant changes at the NYSE Board. But the real > > question is why that Board, with representatives from the most > > sophisticated firms on Wall Street, agreed to pay its chairman such > a > > rich compensation package. There is only one conclusion: He was > worth > > the money. > > > > While the NYSE bills itself as "a private company with a public > > purpose," there is no doubt that its chairman's most important role > > is to protect the interests of its members. And no interest is more > > important than the protection of the trading profits derived by the > > NYSE's floor-based specialists. Thanks in large part to Mr. > Grasso's > > efforts, the NYSE has, until recently, enjoyed a remarkable level > of > > prestige, providing the cover necessary to protect its inherently > > unfair and inefficient trading system. > > > > Every security traded on the NYSE is assigned exclusively to a > > specialist firm. The specialist ultimately sees every order in its > > assigned stocks submitted to the exchange either electronically or > > through brokers on the floor. But while the NYSE grants specialists > a > > privileged position in order to maintain a "fair and orderly > market" > > (which, curiously, is nowhere defined), the specialist is also > > permitted to simultaneously trade for his own account -- an obvious > > conflict of interest. > > > > NYSE rules attempt to limit the specialist's ability to improperly > > use inside information by limiting specialists to trading only when > > there is a temporary disparity between supply and demand, buying > when > > there are no other buyers and selling when there are no other > > sellers. Yet if specialists really traded only when there is an > > absence of buyers or sellers, one would think they would lose > money. > > > > The fact is that specialists are profitable, in Samuel Johnson's > > words, "beyond the dreams of avarice." A forthcoming study by > > Precision Economics will reveal that publicly traded firms with > > specialist units last year enjoyed pre-tax profit margins ranging > > from 35% to 60%. Labranche, the largest NYSE specialist, generated > > more than a quarter of a billion dollars in revenues, almost > entirely > > from trading for its own account on the floor. Pretty profitable > for > > trading only when nobody else wants to! > > > > Since trading is a zero-sum game, these profits come at the direct > > expense of investors such as large institutions, which desperately > > want competitive alternatives to the NYSE but are reluctant to > > publicly complain about the fundamental unfairness of the NYSE > model. > > After all, institutions have to do business with the NYSE because > > there are no real competitive alternatives. > > > > The NYSE has perpetuated myths that mislead regulators and the > > investing public into believing that specialists serve the public. > > For instance, the NYSE asserts that investors need specialists > > because without them, "who is going to be there to buy or sell when > > nobody else wants to?" The NYSE claims that the specialist reduces > > market volatility by acting as the buyer or seller of last resort. > > > > Think about that: Envision SpecialistMan, emerging amongst the > bedlam > > of a fast falling stock with a giant "S" on his chest. Quickly > > calming the crowd, he exclaims "I will buy from every one of you > > because it is my duty, even though I will lose money." They sell > > their shares to SpecialistMan, praising him for his willingness to > > selflessly provide liquidity, regardless of the impact on his > > profits. > > > > While this notion is ridiculous on its face, it is still put > forward > > to defend the NYSE specialist when nearly every other major > > instrument is traded completely electronically without anyone being > > given an informational advantage. The truth is that when a stock > like > > Enron starts falling, just like everyone else, SpecialistMan gets > out > > of the way. > > > > We ought to ask ourselves why we even want a specialist to manage > the > > decline of a stock. In an efficient market, that is the last thing > we > > should want. The market should be permitted to clear -- move to its > > equilibrium point -- as quickly as possible, without somebody > trying > > to manage the process. A slowly declining stock only hurts buyers > at > > the expense of sellers, and vice versa. > > > > We need not worry about the specialist abusing his privileged > > position, we are assured, because the NYSE's cardinal principle is > > that the investor's interest is always served first. But it's easy > to > > get around this tenet. Even though there is no imbalance between > > supply and demand, the specialist simply trumps the price of > investor > > orders. If a specialist is holding investor orders to buy IBM for > > $10.00, he cannot buy at $10 until all investor orders at $10.00 > are > > executed. But he can buy at $10.01. With his informational > advantage > > over everybody else concerning the likely direction of a stock's > > price, the specialist will outbid investors only at the most > > advantageous moments. > > > > Ironically, the specialist is rewarded for this exclusive > > opportunity. The NYSE calls this "price improvement" because the > > investor trading with the specialist receives a better price. The > > NYSE actually brags about the frequency of price improvement, which > > really represents how often the specialist uses his informational > > advantage (what most of us would otherwise call insider > information) > > to make a trading profit and disadvantage investors. > > > > These points should not be a revelation. Why would NYSE members pay > > approximately $2 million for the privilege of standing on an old, > > crowded floor all day unless they gained some sort of advantage? > > Membership has its privileges. But does the public benefit from a > > structure that grants privileges to a select few even though, > thanks > > to technology, we now have more efficient ways to trade securities? > > > > SEC rules ban floor brokers from trading for their own accounts. > > Specialists, however, are exempted from this prohibition because > they > > are assumed to be performing a public service, an assumption belied > > by the facts. So let's be clear. While the NYSE Board structure > needs > > to be fixed, and fixed promptly, we investors ought to focus most > of > > our attention on the profit center of the NYSE, its specialist > > system. > > >
