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>From a reliable source (IMO) a cme electronic local in the
emini.........shape of things to come?
>Globex2 asks: How's trading going?
EL's reply below:
Trading is going well but it does get tougher by the day in my small niche.
Globex 2 has brought new competition that I hadn't expected in the form of
computer locals. Not many people even realize this is happening but a
couple
of the large trading firms have programmed computers to trade like locals
and
tied them direct to the system with their API to do the arbs and leg
spreads. Needless to say, they are quite fast and difficult to beat. They
are making things rougher for the "real" locals. We have figured out some
ways to trick them and they do occasionally make mistakes but they are
constantly being tweaked and improved by their humans so the future is
uncertain. The CME says they are technically misusing their API connection
since it was supposed to be used for speeding up their ability to update
option quotes and it wasn't intended for use in futures. But they won't
stop
it because it does create tight liquid markets. They may not like it in a
few years when the human locals are driven out though. I kind of feel like
a
factory worker being replaced by a robot. :) (not that I am leaving yet, I
am still a pretty highly paid factory worker!)
Jon
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