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Tom:
You know, I don't bother to complain about anything done about the New
York commodity markets these days. I stopped in the mid 1990 when I
spent a few weeks on their floors when a large gold merchant gave me a
badge and told me it would be worth my time for me to get the scoop
'up close and personal.'
On one hectic afternoon, I was taken to a back room area where the
floor clerks, hours after the close, were trying to match tickets and
slips. I quipped at the time that it looked like someone had thrown
250,000 tickets and slips into the air, hoping they would match
themselves. One of the clerks looked me in the eye and told me that
that would have been quicker and more accurate.
In short, those markets are quoted, traded and filled the way they are
because they are allowed to get away with it. I do still trade some of
those markets, but I know going in I will have to watch my fills,
watch where I put the order into the pit [I only trade those markets
if I have direct pit access...] and I expect 50 percent of the time
I'll have an argument about something...
So the quotes never surprise me. I figure, it's just another way they
can keep us guessing and complaining less directly to them. Sad but
true.
Tim Morge
Tom Cathey wrote:
>
> This was sent out Tuesday - Maybe it got lost -----Sorry if it gets posted
> twice - TC
> ----------------------------------------------------------------------------
> -------------------------------------------------------
>
> Hi Everyone -
>
> Today, as usual, I found a large number of bad ticks in the regulars....the
> oils, coffee, etc.
>
> I just cannot understand it! After all these years you'd think they would
> put in a little software routine to catch a ridiculously "off the wall" bad
> tick as it comes out of the pit.
>
> I envision a minimum wage person sitting in the pit punching in numbers as
> he hears them. Everyone makes mistakes, including the CBOT, CME etc. But
> notice the other exchanges RARELY have bad ticks....sometimes for weeks on
> end.
>
> Anyway....here's my assessment of the NY commodity markets:
>
> When a trading friend asks me an "information" type question about New York
> commodity markets, and I don't know the answer, I usually say..."just
> figure out how they can best screw you and that's the answer".
>
> Example:
>
> Question: How good are the fills coming out of NY? Ans: Many times they
> will fill you at the top of a move after it happens. Question these bad
> fills and you will usually get them to adjust the price without
> arguement...(they got caught)
>
> Question: How good are the quotes coming from the pit ? Ans: There are
> days when you simply give up deleting their bad ticks....sometimes I look
> at the next contract coming up (after the server was collecting data for a
> coupla months) and am floored by all the bad spike ticks of the past)
> "Don't worry, they won't make money no matter what data when send out"
>
> Question: Are they open or closed during "off" holidays? Answer: Of
> course they're closed! Look down the quote window list on an "off" holiday
> and you'll see all the NY markets off somewhere at the beach...the heck
> with the rest of the world!
>
> Question: Gee, what kind of delay on "delayed" quotes can I expect? Of
> course, another screw job - All the other exchanges give you 10-15
> minutes....NY delays their quotes by a full 30 minutes!
> "Let's make SURE they pay for real time"
>
> Question: What are the exchange fees for quotes? They are by far the
> worst in the industry. While the CME and CBOT have the most active and
> liquid markets in the country, the NY Markets have found a way to charge
> almost twice as much to do business with the "den of thieves" (as many
> traders call them) in NY.
>
> I find it no coincidence that the NY Stock Markets are obviously located in
> NY also. Their "market maker" good old boys network is legendary.
>
> Maybe it's just the obvious cultural difference comparing the Mid-West
> commodity markets to the NY ones....but I for one have put up with their
> crap for many years now and cannot believe it continues in this day and
> age.
>
> Have others experienced these feelings? What do they say when asked about
> their constant bad ticks?
>
> Tom Cathey
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