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AM settlement was intended to allow the imbalances to occur at the
opening so they could worked off by the specialist community during the
day... instead of taking them home if they occurred at the COB. IMHO it
was a screwing of the public by the professional community. Overnight
risk is now held by the public .. from Thursday's close to the opening
settlement on Friday. It is a clear indication that the NYSE specialist
community has a more powerful PAC (back when the change occurred) than
any group of individual investors has.
Gary Funck wrote:
> Recently, I was discussing the different settlement terms of SPX (S&P
> 500 Index options) and OEX (S&P 100) options: where SPX's settlement
> price is based upon Friday's opening prices, and OEX is based upon
> the S&P 100's close on Friday. However, I couldn't remember when
> this change in SPX terms was made, or more importantly - why?
> Was this change made in the aftermath of Oct-87? What problem
> did it intend to fix?
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