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Michael, could you clarify the mechanics of how stop orders are
currently handled by Globex2? Have the internal Globex2 stops been
implemented? If so, how do they work and are they being used by all the
FCMs?
Under the old system, a sell stop order was stored in TOPS and, when
elected, TOPS would enter a limit order into Globex below the market.
Default was 200 points below but some FCMs, including mine, felt that
was too tight and used bigger numbers... 400 in my case. I've never
gotten a good answer about whether that is 400 below my order price or
400 below the tick that elected my stop.
Any clarification would be much appreciated.
--
Dennis
comdytrd wrote:
>
> Regarding the emini-sp spike down, I must apologize for the golbex traders
> who were asleep at the wheel at that time (myself included I suppose)..
> There were obviously very few bids in the emini at the time and the stops
> were not filled appropriately. The fills were out of "range" , were
> challenged, and were busted as I recall.
>
> I think a 5 lot set off the drop. At least this is my recollection. A
> horrible fill can be challenged as being "out of range". Locals try to have
> bids and offers in the market a reasonable levels, but with the recent
> volatility, it is becoming harder and harder to determine what is
> reasonable...
>
> One possibility for traders is to use stops with limits, with whatever limit
> you feel reasonable. In the above mentioned case, busting the trade takes
> time, up to 15 minutes or so, and that period of uncertainty is troubling at
> best. I often wonder if a program could be added to have stops offer down
> the market in step by step fashion to give locals time to place bids, but
> then of course locals could race the orders, creating another possible
> problem.
>
> The search for a perfect system goes on.
>
> Best,
>
> Michael
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