|
PureBytes Links
Trading Reference Links
|
Brian,
The good reason I have used a Ginzy is for executing a bond spread. If it
is quoted 10/32nds bid and 11/32nds offered the implied yield spread of
that 1/32nd can be 30 basis points on an arbitrage. If I want to do it at
10 1/2 and you want to take the other side at 10 1/2 we need to do half
at one price and half at another(a Ginzy). It's effectively allows trades
between the official bid and offer. Obviously, some exchanges have halved
tick values to accommodate.
Jim
----------
> From: Brian Massey <bnm03@xxxxxxx>
> To: Omega List <Omega-list@xxxxxxxxxx>
> Subject: RE: More NY Market Thievery...
> Date: Sunday, March 29, 1998 10:23 AM
>
> Jim,
>
> Who says we live at the top of the food chain? I always did want to know
> what being prey felt like. I guess like death and taxes there's not a
lot
> you can do about falling victim to a floor trader's greed. One question
> did come to mind as I was reading your response. If Ginzy'ing is illegal
> then how can there be a "good reason" for doing it in any pit? And why
is
> does it only seem to happen in New York?
>
> Brian.
>
> -----Original Message-----
> From: Jim McConnon [SMTP:Jmcconno@xxxxxxxxxxxxx]
> Sent: Saturday, March 28, 1998 9:10 PM
> To: Omega List; bmassey@xxxxxxxxxx
> Subject: Re: More NY Market Thievery...
>
> In the early 80's the term Ginzy was used to describe a split fill done
in
> bonds that was a "prearranged " trade of half at one price and half at
> another. This was particularly useful in bond spreads that traded in
32nds
> when both sides really wanted to do the trade in between the bid and
offer.
> Like all prearranged trades it is illegal. I was told that it was named
> after a guy who popularized it. I'm sure that it is still done in many
> pits for good reason.
>
> Your NY experience sounds like predatory fills.
>
> Jim McConnon
> jmcconno@xxxxxxxxxxxxx
>
> "This is the life you have chosen" - The Godfather
>
>
>
>
> ----------
> > From: Brian Massey <bnm03@xxxxxxx>
> > To: omega-list@xxxxxxxxxx
> > Subject: More NY Market Thievery...
> > Date: Saturday, March 28, 1998 10:09 PM
> >
> > All,
> >
> > I trade the NY markets quite a bit and have encountered a filling
> technique
> > that so far is quite unique when compared to Chicago. In some cases
when
> I
> > enter an odd lot order say to buy 3 CC or SB, I'll get filled at one
> price
> > for 2 contracts and 1 tick higher (or lower for a sell) for the 3rd. I
> > always just blindly assumed that the price was moving while the
> transaction
> > was occurring and so being that it was NY, I got the higher fill on 1.
> But
> > a buddy from Chicago had a different take on that situation. He said
> that
> > it was due to a NY phenomena known as ginsuing (sp??) where the floor
> > trader will take an extra tick because of the odd number of contracts.
> > Apparently this is common practice in NY but I've never, in the
hundreds
>
> > of trades I've placed, experienced it in Chicago or the Midam.
> >
> > Has anybody else experienced this and could elaborate on what exactly a
> > ginsu is/why it happens.
> >
> > Thanks,
> > Brian.
> >
> >
|