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On Fri, 01 Aug 1997 15:24:01 -0700 generate <telerate@xxxxxxxxxx> writes:
>In responce to the below message:
>
>You know... another way to view this 'happy' event is simply that the
>CME has effectively DOUBLED its fees for the same level of
>profit/loss
>potential. (Same for the Brokers and Clearing houses.)
>
>Is the CME offering to split THEIR fees in half? How about the
>Brokers?
>Will they also split their commissions in half?
>
>When it really comes down to it...someone who can't afford a $16,000+
>margin usually cannot afford $8,000 either.
>
>Maybe that's why the MIDAM volume/OI numbers in the grains are so low
>compared to the CBOT.
>
>This isn't a complaint....just an observation.
>
>Success in your trading.
>
>Ryan Garrett
>telerate@xxxxxxxxxx
>
>
>
>=================================================================================
>
>Subject:
> Re: Floor Traders-Sloppy Executions
> Date:
> Fri, 1 Aug 1997 17:13:02 -0400 (EDT)
> From:
> Intel55@xxxxxxx
> To:
> RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>
>
>
>
>Well you all should be happy to know that the Merc is splitting the
>S&P
>in
>half. THey are dropping the multiplier to $250 from 500 and taking out
>the
>.05 ticks, so there is only .10 ticks (stsill same $25 tick change).
>They
>want to drop the average daily dollar move from $6,000+ to about
>$3,000.
>Also
>the "mini" is coming very soon. THey are working on the mini area
>right
>now.
>So these moves should enhance liquidity and allow the smaller players
>a
>chance without getting killed and then killed again. Margins will also
>be cut
>in half. Should happen in Sept!!!!!!!!!!!!!1
>YEehaawwwwwwww
>
Gentlemen: As a former equity specialist on a regional stock exchange, I
don't necessarily think that splitting the S&P is the answer. What
exchange needs to do is to make sure that those people that call
themselves "Market-Makers" be required to make continuous markets and not
run to the head when the going gets tough. Until that happens, the so
called market makers are just opportunists that are trying to manipulate
the market and are not a stabilizing factor. That is why the specialist
system is better if the specialist is well capitalized.
Good Trading.
George
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