Morley Conn

So it can be driven by levels as well.

Technical levels, breakouts.

There's a lot of that type of activity that occurs in the ETF market.

So technical levels.

systematic, lot of drivers for where blocks will trade.

How do the ETF blocks actually get priced?

With great difficulty.

I'm kidding.

It goes back to where do I think I can hedge my exposure?

And for most decently sized trades, it's not going to be too far off of where the current market quote is.

But if it's a larger trade,

in some sort of sector ETF, for example, or a more esoteric bond ETF, the market makers really need to think, where am I going to get the offset?

What is it going to cost me?

And it's really an art and a science.

The market making of ETFs is an art and science.

There are tools that market makers will use

that will give them indications to what the depth looks like

of a given basket of stocks and how far down you think or how high up you think you're going to have to go if you were a certain percentage of the market volume.

Those don't help you in non-exchange traded products though, guys.

And so those will help.