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Limit Order Rule Modified

Traders Magazine, November 2001

Gregory Bresiger

Market makers, prevented from stepping in front of customer orders on the OTC Bulletin Board, have seen that restriction eased under a rule modificaton introduced by the SEC. However, the change in the limit order rule, which will stay in place on a trial basis until February, has received a mixed reception. Under the change, if a customer order price is outside the bid-offer spread in a stock, market makers can price improve' and step ahead of the order.

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