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Subject:  Howard: Fido vs. ET, Again Date:  9/26/2012  12:19 PM
Author:  trader2012 Number:  34412 of 36328

These were the respective books just now. (The issue doesn’t matter).
Fido ET IB
65.000x12(12) 65.000x12(12)
65.120x190(10) 65.120x190(10)
65.250x50(20) 65.250x50(20)
65.700x26(10) 65.700x26(10)

It’s easy to see what’s going on.

- Fido was willing to undercut ET by $.02 cents per bond to move the lot of 86.
-IB was only listing the lot of 12, but it was flagging it ‘NT’, meaning, the trade wasn’t executable.
-For the lots of 190, 50, and 26, ET and Fido were re-quoting from the same underlying dealers and asking the same mins (which are set by the desk).
-Fido and ET were each re-quoting lots from two different desks.

Now, look at the tactical picture: To get in with less than a 5-min, a would-be buyer would have to bid up from the ‘national best’. I bid for 2 at 66 but got filled at 65! E*Trade treats its bond customers right, or at least, it treats me right. Quite often, I've got price-improvements from them, and their mins are a lot easier to deal with than anyone else's. (YMMV)

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