Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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July 31, 1998

At Deadline - Standards

By John A. Byrne

Nasdaq market makers have stepped up their fight against new primary market-maker standards proposed by the National Association of Securities Dealers. Traders, in particular, have singled out the NASD's proposed net-liquidity rules, arguing that many market makers would be unable to fulfill those standards for a major proportion of their stocks.

A group of prominent trading firms, including Jersey City's Sherwood Securities and Herzog, Heine, Geduld, New York-based Bernard L. Madoff Investment Securities and San Francisco's Charles Schwab & Co., are working together to press the Securities and Exchange Commission to reverse the NASD plan.

In a letter, the firms outlined their own counterproposal. The Securities Industry Association's trading committee and the NASD's Quality of Market's Committee have been huddling on the NASD's proposal, hoping to hammer out a compromise plan, insiders said.

Meanwhile, trading sources expect the NASD to refile with the SEC parts of its plan to implement an order-delivery and exeuction system. The expectation is that the limit-order-book feature would be detached under the new proposal, from other parts of the system. The revamped plan is favored by many market makers once it includes a trade-through rule.