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Regarding fills/slippage on the NASDAQ vs Emini, some NASDAQ stocks are more
liquid than the Emini, some less. Many traders won't trade stocks that
don't trade atleast 100K or 500K shares a day to avoid those problems. It
could be that there are just more people on this list who trade Spooz than
equities. You can trade equities for as low as $4.95 with Etrade or $5 with
Brown or $7 with Ameritrade. And they get their share of complaints. If
you want to see complaints about equity fills or commissions or
MMs/specialists, go hang out in the Motley Fools Devil's Den or Position
Trading forums. No futures traders there but the complaints are the same.
Kent
-----Original Message-----
From: James F. Mazzulla <tagteam@xxxxxxxxxxxxx>
To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Sunday, May 28, 2000 6:57 PM
Subject: All Electronic All the Time
2) Obviously, NASDAQ is an 100% electronic. Until recently,
Level II fees were $50/mo. Similarly, until recently,
exchange fees for RT CME and CBOT data, were $50/mo and
$55/mo, respectively. Yet, over the last couple of years,
there have been dozens of complaints about the latter yet
virtually none concerning Level II fees. Why? Along the same
line, traders are paying under $10 (some as low as $4.95) to
trade the E-Mini while the lowest ticket charge I've seen
for NASDAQ trades is $14.95. Again, why does there seem to
be a disproportionate number of complaints? Further, after
having seen some fills in certain NASDAQ stocks (e.g. QCOM),
I'm left wondering why there are so few complaints about
NASDAQ fills.
4) There seems to be quite a bit of animosity directed
toward locals. Ostensibly, some traders believe that they're
being "cheated" and/or the locals shouldn't have the
"advantage" that they purportedly enjoy. Thus, the "level
the playing field" mantra. Considering locals endure the
rigors of trading in the pit on a daily basis and have a
rather high overhead compared to screen-based traders, how
is the playing field "un-level"? Considering almost everyone
who trades, but is =not= a local, has the option to become a
local (i.e. there are few barriers to entry), why is there
so much resentment? Conversely, why is there so little
resentment directed toward NASDAQ MMs (or, for that matter,
NYSE specialists)? Lastly, considering how difficult it is
to scalp in the pits as a result of the fierce competition
between locals, why would anyone attempt to scalp from
off-the-floor?
Although I can understand the desire to eliminate the
"middle-man", I can't quite figure out how to eliminate his
function =nor= how an electronic exchange, merely by virtue
of being electronic, would be able to do so. If anyone has
any thoughts on these issues, I'd love to hear them.
Jim
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