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Neil:
This is my guess, after talking to my floor guys yesterday after the close and
this morning...
Lots of the S&P guys, like many of us in the market, are looking at the pits
getting smaller and then going away--So when they put terminals for the locals
in the pits [around the outside, really], some guys started standing at a
terminal and then arbed back and forth from the SP pit market to the electronic
trades available on the screen. Guys in the piuts got hung yesterday when the
news came out and there was nowhere to get out for a few minutes, and when there
was a market, the E*Mini was wrongly priced compared to the S&Ps for awhile, as
people got out and rearranged their positions.
And worse, imagine you were in that frenzy on the floor and you lost money and
got beat up [probably lost a fair piece of change] and you find out that a whole
series of trades were going to be busted. Now, one of the things about trading
in the S&Ps is that you may have out trades and out trades are posted at the
morning call session. After a day like yesterday, that would be a very well
populated morning call and instead of happening at 7 AM it was probably
happening at 5 AM. So now the guys worry all night about whether their trades
were busted or did they have other out trades, they get to the MERC at 5 AM,
find out, deal with it...and the pit doesn't open until 8:30.
I am guessing that most guys that got tagged for a large loss came in, did their
out trades and then went home--either to sleep or to golf to take their
frustrations out on a ball, and then sleep.
That's my guess, anyway.
Best,
Tim Morge
Neil Harrington wrote:
>
> TJ,
>
> <SNIP>
> |
> | also, 1/3 of the e-mini terminals are empty today. usually, they are
> | filled up. e-trading may take a long time to recover from
> | this "fubar."
>
> <SNIP>
> | TJ
> |
>
> Could you explain what this means?
>
> Neil
Neil Harrington wrote:
>
> TJ,
>
> <SNIP>
> |
> | also, 1/3 of the e-mini terminals are empty today. usually, they are
> | filled up. e-trading may take a long time to recover from
> | this "fubar."
>
> <SNIP>
> | TJ
> |
>
> Could you explain what this means?
>
> Neil
|