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Hello ,
I just can't keep my mouth shut, so what's new. I just spent two days
with one of the five largest traders in the SP pit. A guy who as of
1996 had over 100 consecutive winning months in the SP's. I have to
say it was the most reveling discussion of honest "ask what you want"
I will tell you. I have even gotten out of some of these guys. I could
never write a book and tell any of this, it was just fascinating to
me. It gave me a deeper insight into the trading industry regulatory
bodies as well. Putting on my shades now.
In recent years he and many others have been transitioning to of floor
trading. I was told that initially he fought the electronic trading.
Now it's of course obvious that it's here to stay and the current
question is how far will it go? Meaning one day we may wake up and
there is no data vendors and no clearing services but the exchanges
themselves. I don't particularly like this idea myself, but I think
his suspicion is dead on.
What brought about our meeting was a general common interest in
mechanical systems trading. I feel a genuine concern for the multitude
of traders who are leaving the pit's daily wondering how they will
stay in the business and make a living off the floor. Especially since
there is a huge consolidation going on at the same time with the
industry in general adds a complication to the mix.
Since 1996 this SP local has been putting into mechanical form what he
was doing successfully in the pit. A task which is not to be taken
lightly I found out. It's very interesting that the old way of doing
business "which frankly I had forgotten about" is still alive and
well. Do you think this guy would simply pick up the phone and call me
or use the one second fast email that we all take for granted?
No he and a protege armed with a note pad flew down here and and we
talked face to face about our passion of trading. It was not one way
exchange as I had thought it may be. It was no holds barred, free
exchange of ideas with all the cards out on the table. He asked
questions I normally would never answer and he answered questions that
would ruin his edge if ever published. I could not have been more
delighted with the meeting of on floor off floor combatants. Who laid
out their weapons for each to examine.
I walked away with many new "mandatory" project ideas, and I hope that
he did the same. It was good for me anyway! I sincerely hope that
other floor traders and brokers find their way to stay in the trading
business which they know and make a living for their families.
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