Sorry. To be more specific. Some of the orders can be internalized. Not sure how often this occurs: "The practice of internalization is prevalent in the Nasda

Sorry. To be more specific. Some of the orders can be internalized. Not sure how often this occurs: "The practice of internalization is prevalent in the Nasdaq market where Nasdaq market makers, who often pay for order flow or are sent order flow by an affiliate, trade proprietarily against incoming customer orders. NASD rules do not require Nasdaq dealers to expose their internalized orders to competitors." On the markets - since so much retail volume is off the market, yes, the market maker has to price improve, but it's against a less than full picture of the market for thinly traded items.