Also, this allows for a larger spread because the market makers rapidly disappear. When the market is in adverse conditions, the market makers use this rule to effectively stop price movement by not providing liquidity. They use 100 shares to form a block while they slow down the movement of the stock thereby reducing the liquidity of the stock. Orders are not being filled by the spread, but by the effective spread created by the market makers. A private investor may not get 1000 shares filled until 1 point below the price because of 100 shares offered by an ECN virtually blocking SOES orders.
Real executions are different than what is being seen on the screen.
It seems to me that the market makers are doing their best to reduce their risks at the expense of the public investor. Let's not allow the market makers to destroy this concept. Let's keep liquidity in the market place so it is a fair system for all persons involved. Thank you again for your attention to this matter. Sincerely, Elinor Mire 2510 Friar Tuck Ln.