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George M Burke wrote:
George,
It seems you are under the influence of a false assumption. There is
no obligation for locals on the CME or any other US futures exchange to
act as market makers or to act to stablize the markets. Perhaps you have
the CME system confused with the competitive market marker system at the
CBOE?
I am sure that if you, as an independent trader/speculator, want to
commit your capital to buying on the way down and selling on the way up,
I am sure everyone concerned will appreciate the increased liquidity.
Knowingly,
Norman
>
> Eric: You have made my point. The rules were not made to protect the
> public. They were made by the members to protect their own ass, and to
> hell with the public. Why do you think that the exchange is trying to
> hold their [public customers. In my estimation its because the people
> handling the orders on the floor, instead of attempting to stabilize the
> market (which incidentally they would probably all make a fortune), are
> attempting to accentuate the moves. It is clear that from time to time
> the :locals" abandon the market and quit stabilizing. That is when the
> S&P starts trading a half and full point between trades. The problem is
> that the exchange does not charge certain members with making a market
> and that they must stabilize, and that is because the exchange is run by
> the floor members.
>
> As to whether or not they should match the tape, that is one of
> the down sides to accepting orders from the public for a commission. If
> you are unwilling to accept your errors, then you should be in some
> other business than accepting public orders. That is exactly why there
> is such a thing as an error account. If the public refused to accept
> this type of treatment, it would change or the brokers would eventually
> be out of business.
> George
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