|
PureBytes Links
Trading Reference Links
|
> The incentive is ALWAYS money.
> And in the words of Deep Throat (Watergate): "Follow the money".
>
> The incentive for electronic trading is coming from large trading houses.
> They already have systems that allow themselves to bypass the exchanges
> for
> many of their trades. The exchanges want to keep as much business as
> possible, so they will change. IMHO, the statement that "the only reason
> they (exchange members) would wish to go fully computerised is to exclude
> and dominate" is not accurate. The big trading houses can take their
> money
> elsewhere, i.e., exclude and dominate the exchange members if the trading
> houses wish to do so. Therefore the exchange members will run like
> slobbering dogs after the big money, and screw anyone that can't keep up.
>
> The real concern for private traders is that the new system(s) offer too
> many advantages to the large trading houses. Believe me, they will be
> given
> some concessions to maintain their business. Guess who pays for those
> concessions? The smaller trader. Don't delude yourself. The exchanges
> are
> not going to computerized trading because "it's better" or "to exclude and
> dominate" or "it's the right thing to do" or "it will allow private
> traders
> to compete on an equal basis with the big boys". No way.
>
> "When money talks, no one pays attention to the grammar" -- unknown
> philosopher
>
>
> Ross Kovacs
>
> > ----------
> > From: Michael Stewart[SMTP:MPST@xxxxxxxxxxxxx]
> > Sent: Thursday, August 06, 1998 11:04 AM
> > To: James F. Mazzulla
> > Cc: Omega
> > Subject: Re: Computerised Markets??
> >
> > James,
> >
> > The (perceived) incentive for the CME to put all its contracts on
> computer
> > would be financial - cheaper to run some computers than run a market and
> > sweep the floors each night (lower costs all round) - like the brilliant
> > idea(I think not) to halve the contract size to increase business and
> > look
> > what happened!! However, if the CME is anything like London markets
> its
> > made up of members and I can see the only reason they would wish to go
> > fully
> > computerised is to exclude and dominate - What you say about Intel
> worries
> > me ! (fewer players more manipulation etc..)
> >
> >
> >
> > On Thu, 6 Aug 1998, you wrote:
> > >......Do you suppose all locals in the S&P will migrate to the
> > >screen? How would that change the price action ?
> >
> > Too early too tell but I doubt it. Some of them would have
> > to be taught what a "screen" is (i.e. "okay, see that sort
> > of square thing over there with the glass front?"). Others
> > simply have no desire to trade in front of a tube and/or
> > don't think they can make any money doing so.
> >
> > I'm not sure about the price action, but watching Intel
> > trade gives me the creeps. If the big SP goes totally
> > electronic and it trades anything like Intel.....yikes.
> > Don't know if you're aware of that game but the big MMs are
> > the ones taking all the money out of that market. IOW, be
> > prepared for =really= crappy fills and don't even think
> > about entering a market order.
> >
> > Now, the thing is that I can't figure why the CME would be
> > under any pressure to list the big SP on GLOBEX (or some
> > other electronic system). Unlike generic products like the
> > Euros, FCOJ, Sugar, Bonds, etc., the CME has the exclusive
> > right to trade futures contracts based upon the SP500 Index;
> > no one else can. Why, then, would they want to change the
> > way it's traded?
> >
> > Best regards,
> > Jim
> >
>
|