Subject: Actual Size Rule
Author:  Chris <vanair@compuserve.com> at Internet 
Date:    4/7/98 10:07 AM
     
     
Sir:
     
Yes, no one should be a market maker in any stock. Why? because everybody 
should be a market maker in every stock. Only when a dealer or customer has 
an order to enter in the system, only then will the market maker I.D. pop 
up with the actual order size. If there is no orders in the system, there 
will be no quote. One sided quotes are excepted and encouraged if a dealer 
wants. Lets say Dealer A wants to buy abcd @ 3 1/2. Currently there are no 
orders in the system so therefore there is no quote on abcd stock but the 
person can see where the stock last traded. Dealer A puts the order out on 
the system and up pops the first market maker with a one sided quote of 3 
1/2 bid for let's say 1,250 shares. Now, anyone interested in filling that 
order can but let's say a different customer at Dealer B wants to buy abcd 
@ 3 5/8 and also has a customer order to sell 2,000 shares @ 4. Dealer B 
all of the sudden is a new market maker reflecting his order and becomes 
the inside market. (3 5/8 - 4 with size being reflected).
That's how I see the future of NASDAQ.