CALPERS Files Lawsuit vs NYSE

c robinson- I wish I could help you but I can not. I started traded nyse in 1996.

We had a real advantage trading nyse prior to the pennying and the emins. My theory is that shortly after the method I used was publicized smart guys with a computer said well we can put a stop to that---- we will just arb stocks with the minis and take away those nice pops a trader needs. Then you had bright and their bracketing. Of course that is why I am going to train my computer to stuff those arb computers.

I have daytrading trade setups that work. The problem is they frequently hit at the same time. And if I miss them that once or twice a day they hit I have completely wasted my time.

I have decided to learn programming and become more automated. I will fight computers with computers because I have lost interest in trying to scratch out money with my senses. I suspect you will do the same.
 
Quote from chasinfla:

exactly. you cannot compete with him, there is not enough margin in the market any longer. there was when times were fat. it happens in <i>every</i> business.

he makes the market: that is his franchise; two specialists in the same stock would be redundant.

the NYSE has been the engine of capitalism for generations; the specialist takes extraordinary risk in addition to having front-line profit opportunity. if he abuses his privilege, the market and the rule of law will eventually penalize him.

incidentally, specialists aren't the only business people (nor is the NYSE the only institution) with integrity issues these days.
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trust me i understand the dynamics of the specialist. i have traded in the 10's of millions of shares. i am just tired of the same old bullshit. that's all. doesn't make me a bad trader. i have been profitable every year. personally, i think the specialist are criminals. there's only one that i think is only halfway corrupt. if you guys like them then more power to you. i hate leaving...i think it could be a great market but it's gonna need some big changes. i'm just no longer willing to wait around especially when they bring in yet another insider.
 
thanks for the post!!!! i think you are right on the money regarding the automation. i've read about one company that is responsible for ungodly daily volume. glad you have the programming skills to compete. give'em hell !!!!!!!!
 
I think that any solution will have some people PRO and other ANTI. For to solve this dilem maybe the best way is to give what specialist and MM want i.e. each of them want to trade stock on the other market, just leave specialist trade Nasdaq stock as they have already request in the past and the samething for the MM. A true free business market, and if every actors in the market are fair no edge should be on any side under this situation. Specialist and MM should not be afraid if they think to have the best offer for the traders!

With this solution, the traders will have the last word on what they want: specialist, MM or ECN!
 
Something is afoot here regarding the new NYSE CEO.

The NYSE CEO job calls for a politician like Grasso. The new guy, John Thain is a hard charging technocrat. It could be that the SEC is going to eliminate the trade-through rule and that Thain's job is to get the exchange ready to compete in the new structure.

Otherwise, his appointment doesn't make any sense.
 
While I think that some changes to the NYSE specialist system are necessary (perhaps cap the specialist's participation as a percent of the volume or alter their compensation structure), I think that it would be a mistake to make the system like Nasdaq.

I liken it to the switch over to decimals - looks good to the public, but for those who trade many realize that it creates even more issues and is probably worse for most people involved. I trade over 10Million shares a month on the NYSE, stocks with big volume and small, with a variety of strategies, and can say that for all the specialist shenanigans, the tape/order book is infinitely easier to read than that of Nasdaq, which I have tried to trade with very limited success.

The other thing I am amazed at is in all this discussion of specialist scamming/taking advantage/making profits, no one anywhere has acknowledged that the Nasdaq has the EXACT SAME THING - they are called market makers, and they make money off the spread and by taking positions themselves, and yet for some reason there is no outcry over those guys making a buck.

In the end, the SEC is screwing themselves, as guys like me start moving more to overnight trading, which means my volume will be lower and their precious SEC fees will dry up. I suppose they might not be sweating it too much, though, because they can just jack the SEC fees higher whenever they need (or want) to.

Ace.
 
Quote from Ace_Rothstein:


...The other thing I am amazed at is in all this discussion of specialist scamming/taking advantage/making profits, no one anywhere has acknowledged that the Nasdaq has the EXACT SAME THING - they are called market makers, and they make money off the spread and by taking positions themselves, and yet for some reason there is no outcry over those guys making a buck.
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I think the key difference here is that a MM cannot hold your order. you and the MM can send orders equally fast to the naz CPU whereas a specialist is the last, necessary step for ALL of your order flow...

Quote from Ace_Rothstein:



In the end, the SEC is screwing themselves, as guys like me start moving more to overnight trading, which means my volume will be lower and their precious SEC fees will dry up. I suppose they might not be sweating it too much, though, because they can just jack the SEC fees higher whenever they need (or want) to.

Ace.
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the SEC doesn't even see most of the fees they collect; only maybe 5-10% at the very most. the thieving assholes in congress "appropriate" that cash elsewhere...
 
Quote from Ace_Rothstein:

The other thing I am amazed at is in all this discussion of specialist scamming/taking advantage/making profits, no one anywhere has acknowledged that the Nasdaq has the EXACT SAME THING - they are called market makers, and they make money off the spread and by taking positions themselves, and yet for some reason there is no outcry over those guys making a buck.
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Also day traders. We basically do the same thing, we take stock ahead of buyers and sellers and give it back at our profit and their loss.
 
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