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With ET old open outcry is not the fairest or the most efficient way to
trade futures anymore. Exchanges see the money being make in the stock
industry using ET and soon quotes will be free. Then the public will for
the first time in history have a level playing field. Locals will have to
learn to trade like real traders because site advantage will be history.
Board of Trade will make an excellent basketball stadium, roller derby
rink, wrestling arena, etc. !!!!!!!!!
Robert
Globex2 wrote:
>>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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