Search results

Whenever one person has an effective monopoly on anything, you always get worse service and worse price than if there is competition. This is especially true with the market making/specialist function. Compare how the bid-ask moves and how orders are filled on a liquid Nasdaq stock like MSFT...

Thank you for helping to sponsor ET.

How would I take an immediate loss if I were in the pit and jumped in front of the bid (900) and then joined the offer(900.20)???? Wallmart? Good company, but I already have a job.

You guys are cutting into my dinner plans The ES prints faster Time and Sales than the pit SP and it makes moves usually before the SP. Next week, pull up a one-minute chart of both the SP and ES and watch how the ES breaks out first, breaks trendlines first etc. It leads the SP by its...

Its called COMPETITION. That is why you jump in front and make a tighter market. That is why Wallmart cuts their prices so they are less than Kmart. According to your logic every store should have the same price because why would they charge less than something is worth? Clearly there is not...

What thesis are you referring to? If you mean that if the Emini trades in .10 increments that the spread will narrow - there is no way it can be disproved because an electronic S&P contract with a .10 tick hasn't traded during regular market hours yet. I do agree with you that the tick...

Perhaps what is needed here is a precise definition of "price discovery". Here are some definitions I found on the web: The name given to the effect a free market has for finding the ideal price for any security or commodity. To simplify it down to one transaction, a seller has in mind a...

Now this is the difference between the pit and the electronic market. In the pit, everyone can see what the other pit traders are doing. If you don't help to maintain an artificially wide spread, then you get shunned or get your knuckles broken by the Italy boys. In the electronic market...

The poll is meaningless. You can just delete your cookie and vote again, as you can on all internet polls.

Baloney! Price discovery is not open interest, its short term current price. Its something the pit with its structural time lag can never match.

I think the subject of S&P500 futures price discovery deserves its own thread. Below is a quote from another thread from jaming5002, an S&P clerk who is going to make the move to S&P pit trader. In his comment he believes the S&P pit still acts as the center for S&P price discovery. I will...

Nitro, you comments are illogical. Its like saying - hey if you don't like paying $40 futures commissions go trade the SPY with $4 commissions. No thanks. I'd rather trade the emini with $4 commissions and a .10 tick size. And yes I am making money, thank you very much. I do more...

Because a wider tick means a wider spread which takes money out of the pocket of every Emini trader who is not trading from a Globex terminal. It is a simple matter of Emini traders paying more in costs than they should. If you are a Globex terminal trader I understand your wanting to...

Arb volume should be a wash. If you take out the arb dollar volume from the Emini dollar volume, you also have to take it out of the SP which is the other side of the arb. So, the dollar volume in both contracts would still be about equal (though lower). (metooxx: I'm a little unclear as to...

If you have a Globex terminal/CME membership you can do that. But if you don't its like trying to buy at the bid and sell at the ask in the Nasdaq back before level two in the early 1980's. Sure you can buy at the bid, but only after the bid-ask/offer shifted to where the bid is now the ask...

If the pit contract has a .10 tick increment and has a spread that varies according to market demand - then why can't the Emini have a tick increment of .10 and the spread will be whatever the market demands? What are you guys afraid of??? PS. there is no pit traded ES, its called the SP :)...

Is this the reason why you want a wide tick increment in the Emini? I'm all for stronger intraday moves but IMHO a wider Emini tick is not going to make the market move further. Buying pressure and selling pressure move the market. If anything, spreading S/R over more data points with a...

If having a .10 tick increment on the pit contract doesn't hurt liquidity there, why would having a .10 tick increment on the Emini hurt it? The lower the friction and transaction costs are for the Emini the more the liquidity. Business will shift from the pit to the Emini making up for any...

I'm just reporting what I was told by a financial guy at this particular firm. He didn't have any reason to lie. It wasn't him doing the trading. I don't know you and I don't have anything against you, but you are making a lot of generalizations that aren't supported by anymore than your...

Though PDT doesn't affect me, the new SEC heads name is William H. Donaldson. A word about process - the SEC chief doesn't actually read your letters or email. His assistants do. They then compile them and at a monthly meeting they may say - we have had a lot of mail on the PDT rule. To...