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I can't speak to the other stock exchanges but electronic trading on the Nyse is
about as good as it gets right now ... from almost any online trading account:
bid/ask/size is timely permitting price discovery, limit orders hit the
electronic book instantly, limit orders submitted between b/a show up instantly,
fills are reported immediately ... no fancy terminal, no exchange fees for the
realtime quotes ... just a browser and a trading account. Spreads have dropped
from 1/8 to 1/16-1/32 and SEC is insisting on decimalization. IMO market makers
are dinasours from days when trading volume was small enough that a MM could
provide liquidity. Today the liquidity comes from the institutions and public
and no MM in the world has a big enough bank account to guarantee liquidity in
this multi-trillion dollar stock market. When the big kahuna comes, these
so-called MM's will run like hell, exchange regs or not.
I know I'd sure settle for futures trading modeled on the Nyse electronic book.
Earl
-----Original Message-----
From: James F. Mazzulla <tagteam@xxxxxxx>
To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Sunday, June 21, 1998 9:03 PM
Subject: Re: The end of open out cry?
>>.......If you want a fill at the inside bid or ask,
>>I just click on it. If you want to go inside the spread, you want the whole
world
>>to know about it, in big neon letters <g>.
>I've been reading a lot of messages concerning this subject
>and can't help but wonder how people think this whole
>electronic deal is going to work. The impression I'm getting
>is that some believe they'll have the ability to pick off an
>MM or even become one themselves (by entering their own
>bids/offers into the system). Not a problem =except= I don't
>think it's exactly what the exchanges have in mind for their
>major products (at least not with respect to Globex and
>Project A). For the aforementioned, you're going to need a
>trading terminal provided by the exchange which will entail
>purchasing/leasing a membership or, at a minimum, obtaining
>a permit. IOW, a free-for-all will not begin if and when
>open outcry ends.
>
>Best regards,
>Jim
>
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