[arin-ppml] Transactional transparency

Robert E. Seastrom ppml at rs.seastrom.com
Tue Jul 3 10:10:31 EDT 2012

"Mike Burns" <mike at camplink.net> writes:

>>Zillow is probably the wrong analogy.  Why not the equivalent of a
> NASDAQ Level 2 quote feed?  "Market maker" is how I described my
> vision of the role for the parties that ultimately became known as
> STLS Facilitators when we were discussing how one might implement paid
> transfers.
> Hi Robert,
> I think a "Market maker" would be able to purchase addresses, but as
> facilitators we cannot purchase addresses into inventory, no matter
> how small or ephemerally held.

Hi Mike,

That's an excellent fine point on the terminology.  Probably "crossing
network" would have been a better choice of words - there is still a
buy and sell book but the operator of the listing service doesn't
actually hold the security.  The buy and sell book was what I was
focused on; maybe bringing "market maker" into the picture muddied the
waters.  Sorry if I have been confusing.

There are several variations on the theme in securities trading (ATS,
ECN, MTF), differing from each other in subtle implementation and
regulatory points.  Doubtless none of them matches what we're trying
to do exactly.

> It's hard to make a market without this capability.

The goal is liquidity and smooth execution, not necessarily enabling
the traditional market maker role.  I don't see anything wrong
in getting fair compensation for helping to make the deals happen.

Thanks for your input and points of refinement; I welcome more.


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