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> Gerrit Jacobsen wrote
>
> However having said all this the DTB, EBS and others are running
> successfully electronic trading systems on a professional basis. And
> apparently these are better than the open outcry market - see
> competition DTB - LIFFE.
Not better, cheaper. LIFFE had a kind of stiff fee schedule, DTB offered
it cheaper. On paper, it takes fewer people to run a electronic exchange
and to clear the trades, and that's what everybody is drooling over. The
quality of execution is not really a part of the formula as I understand
the situation.
Speaking of the DTB, I have a question. On a E-exchange, the big
advantage is supposed to be the instant "Clearing" of the trades which
eliminates all the back office work. When the Griffin disaster happened
right before Christmas, I understand the trades were executed on one day
and then "given up" to the clearing firm in the middle of the next
morning (in which case they were already sunk). There must be a lot of
holes in the system at the DTB if these are the facts.
K
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