[lbo-talk] NYSE Specialist Scandal?

Doug Henwood dhenwood at panix.com
Thu Apr 17 09:02:29 PDT 2003


H. Curtiss Leung wrote:


>(Doug, didn't you write that being a Specialist on the NYSE was practically
>a license to print money?)

Yup. Aside from the guaranteed commission, a specialist watches order flows, and knows the balance of supply and demand, and trades accordingly. It's a legal form of insider trading. So it's pretty funny to accuse specialists of front running - it's almost part of the job description.

Doug



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