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On 06/28/99 14:40:45 you wrote:
>
>Regarding locals knowing where stops are....
>
>I traded on four commodity exchanges and very rarely knew where stops
>were...sometimes a broker would apear anxious as a certain level was being
>reached and this might be a tip, but revealing orders is very serious and
>there was always someone around would you rat (myself included--mainly
>because I hated the little clicks which formed).....
>
>When brokers could trade for themselves without restriction and had a few
>"partner" brokers, they often would trade a great deal amongst themselves,
>expecially on the Merc, and I always suspected things were not quite above
>board. I found the CBOT to be a better environment for me....I beleive in a
>level playing field and if some had knowledge that I didn't, it pissed me
>off..I"m sure others too, and the rules and practices have been greatly
>changed and tightened since the mid 1980's which is my experience timeframe.
>
>A major benefit, by the way, of being a local was the opening range where
>the customer almost always sold the low end and bought the high end of the
>opening range from a local...often a local to whom the broker owed a
>favor...Electronic trading splits the range of bids and offers and fills all
>at the medium price...a loss to locals, but then there are many fewer
>"errors" and outtrades which have to be "paid back" out of locals and
>brokers pockets, and that is a huge benefit.
>
>Bring on electronic trading!! BTW, CBOT membership (in a reversal of
>earlier vote) voted last week to proceed full speed ahead with the EUREX
>alliance and electronic trading should take a huge leap next year. Dow
>futures to trade side by side pretty soon and Merc expanding electronic
>offereings..
>
>The leverage and commission rates available should greatly interest today's
>SOES traders...if there are any surviving by then.
>
>"Chow"
>
>Michael
>
>
>
Yes electronic trading is quite the white tornado in the trading arena
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