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>
> The CFTC needs to be merged into the SEC, but this will not occur, in my
> opinion, until the futures exchanges have a strong foothold on stocks
through
> successful single stock futures contracts. Only then, after the futures
> firms themselves have transformed themselves into securities firms as well
> will enough players beat the political drum to sacrifice the CFTC in the
name
> of avoiding double regulation.
I have a better idea for a lot of traders. Go offshore, start trading at $0
commission
forex brokers, or other markets. Europe is full of electronic operations,
and there
is no reporting to the IRS.
> Futures firms are best run by futures people, even the futures arms of
> securities wire houses. Securities have been a different animal. The
> spectacular volatility of the Nasdaq and Internet stocks has introduced
more
> commonality in recent years. But largely securities people and futures
> people are different; different risk, different regulators, different
types
> of investors/traders.
>
> Market forces will encourage consolidation and mergers of futures firms
and
> securities firms. The firms that will dominate going forward are those
> technologically advanced enough to provide their clients and their brokers
> the tools to trade these markets from one screen. They will also have to
> have a competitive cost structure in clearing trades.
A computer, an internet connection = floor trader on the digital marketplace
somehow, someday . . . I pray before I go to bed each night, that brokers
will
stop skimming off the top $10/rt or whatever on my 50 lots. Come on!!! $500
a pop!!! give it up!!! It isn't bad for the newbie who thinks $16/rt is
great. But
when we do volume? It is ridiculous and SOME of us more intermediate
traders
know exactly what I am talking about. I think we should get free trades
after 10
lots for the sake of us creating liquidity. How is that for a concept?
> Liquid markets will come from exchanges offering even playing fields for
> traders all over the world being able to access electronically traded
markets
> with and with brokers offering a cost structure low enough for clients to
> trade like a market maker.
Why don't brokers learn how to trade? Don't they understand TRADERS want
to be ONE with the market... like Zen...
> Just when I thought I had positioned myself for this whole electronic
trading
> revolution, all this potential revolutionary change shows ups. It is
enough
> to make any broker nervous. :-)
Brokers need to die. We need computers matching us as fast as possible
to our orders. I don't need slippage, or even floor trading. I want
electronic
technical markets where my skills can shine. If brokers want to continue
making money, they can learn to trade. It is not my concern that a broker
has
a job. He is something that is between me and the market. Just like the
IRS
is between you/me and unlimited possibilities for our wealth.
These usurpers need to go away. They think they create value, and
efficiency,
but really, for how long? Will we have to pay commission perpetually while
we
create liquidity and support the market?? Because THAT is what us traders
do
we support the liquidity of a marketplace, and to interact we need to pay?
I think the CME (etc) should give Globex Terminals away if we deposit
$10,000
to the CME itself. THAT simple. If everyone on here could have a Globex
terminal beside their tradestation, wouldn't that be neat? I think so. I
also think
the $25,000 deposit for it is idiotic -- for an ORDER entry box that I still
have to
pay some commission to, to some clearing member???
[correct me if I am wrong]
> Regards,
>
> John J. Lothian
>
> Disclosure: Futures trading involves financial risk, lots of it!
Then why on earth would you charge me a commission? You know why? Because
the guy before you told you THAT is how the market works, and so on and so
on, but
in reality, with the advent of the computer, you guys need to get a new
life, because
clipping traders, who create your marketplace -- sucks.
> Disclosure: John J. Lothian is the President of the Electronic Trading
> Division of The Price Futures Group, Inc., an Introducing Broker.
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