|
PureBytes Links
Trading Reference Links
|
I had similar thoughts. In my initial professional days on the markets, I worked
on the French equity open outcry pits, and later witnessed the whole transition
from open outcry to electronic on the various instruments (cash, futures,
options), and did notice the same things. My current belief is that electronic
markets exacerbate volatility to some degree. On one hand you get better
transparency, on the other hand you get more excitement and extreme moves seem to
go further now before countertrend players step in.
FWIW
Gwenn
BUBLS@xxxxxxx wrote:
> I am a floor trader in the futures pits in Chicago. I believe that most
> trading will migrate to electronic platforms because the feedback is so much
> faster and because the costs are so much lower ( fewer clerical and
> keypunching personnel). I hope that the exchanges wake up and move to
> modernize the pits and become as close to electonic as possible because to
> lose the floor population entirely poses certain risks that are not always
> fully appreciated in good times. No all electronic market has had to
> withstand a real crisis or panic. These thing happen with some frequency even
> though the past decade has been very benign. A floor population will provide
> a bid and offer even in a panicky market ( maybe not a very attractive one)
> and that is a valuable feature to a trader. We all get a little taste of this
> problem in a positve way in nasdaq stocks that surge 20,30, or 40 dollars in
> a day because the otc market makers are afraid to sell into the rally. No one
> complains because we like to see markets go up, but, that is a condition of
> illiquidity and on the downside it is no fun.
|