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>
> The quotes are just faster for the mini...it doesn't actually get their
> first. As im sure you know, the mini follows the big contract. Sorry
> to nitpic ;)
>
As long as nitpicking is allowed, both lead, both follow. The Goldman's and
the Morgan's and the rest of the major players along with a handful of minor
players play the game of big/mini arbitrage. If the big leads with an
uptick, it is sold while the mini is bought. The opposite is true as well.
What makes this arbitrage possible is the fact that the CME has lifted the
rule that required that mini orders of a particular size or greater ('can't
remember if it was 30 or 50) be routed to the pit for open outcry execution.
This was designed as a job saving measure by the board of directors but was
scrapped as a result of the "pager scandal" earlier this year. Now, any
size order put into the mini naz is filled electronically which means large
sized orders which have a tendency to direct the market can be filled
electronically.
-Sean
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