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From: "Patrick White" <spy@xxxxxxxxxxxxxx>
> Bonder, James Bonder Wrote:
> ***You have learned and earned, with hard work, an edge. But the true
> edge will always and forever be their domain in their game.
>
>
> I used to think this was true. They always have the execution edge in the
> pit. But with the EMini some of that edge is mitigated. If the exchange
> were to dual list the S&P on Electronic as well as in the pit, even with
> contract limits as in EMini, it would improve the off-floor execution edge
> dramatically (for small traders).
agreed
> The pit IMHO caters to the big boys who
> swing hundreds or thousands of cars. Electronic markets favor the small
> operators
NO, e.g. LIFFE used to think the same for the german BUND future with their pit
trading while DTB (eurex these days) been trading it electronicly all the time.
I remember some 5 years ago when LIFFE (pit) had 3 times the volume of DTB
(electronic) and already at that thime there was a study that EXECUTION wise
youre better handled ELECTRONICLY.
LIFFE didnt bother to change and EUREX went full speed ahead - LIFFE
completely lost it and these days EUREX trades 800.000 and more cars per day
in electronic BUNDs. Since march EUREX has become NO 1 WORLDWIDE
future exchange on volume !!! - yes its not CBOT anymore who want to ignore
EUREX for as long as poss but now come closer to some linkage as they
FINALY feel the threat.
ELECTRONIC trading has the REAL advantage for SIZE aswell - unfortunately
neither GLOBEX, TOPS or CUBS or whatever toy been used over there can be
PROFESSIONALLY used as it crapped out to often in last months - with those
"tools" nobody will move SIZE to an electronic market, but its still the BETTER
choice !
rgds hans
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