Hey NYSE: STOP "pennying me to death"!

[def]

Quote from chasinfla:

def:

the issue is that these tiny increments are used to obfuscate the job of a market: efficient exchange of private property. The tiny increments/decrements are being used to mask what the true market is, thereby making for lots of frivolous trades. Guess that's a good thing if you're making a living off the infrastructure.

"Duke and Duke always get the commission."

sure, our brokerage makes money "living off the infrastructure" but a much greater piece of our business is our groups trading/market making operations where wider spreads don't necessarily hurt. I could also argue that penny spreads actually cost a brokerage more due to an increased number of orders which tax infrastructure. Besides, what is a frivolous trade? That makes no sense to me at all. If a buyer and seller meet at a price, isn't that what an auction market is all about?

It works both ways and pennies do matter. 10,000 shares * .01 = 100 bucks; 1 million shares * .01 = 10K. If you are trading larger size - in particular think mutual funds and the institutions, each penny saved adds up to substantial numbers quite quickly.

I'm not necessarily for or against penny increments. My comment though was made to point out your analogy wasn't comparing apples to apples.

 

[chasinfla]

def, i wasn't talking about your firm specifically. that remark was tangential and I believe that i edited the post.

 

[def]

no problem, I could easily argue both sides of this argument while still believing the specialist system and not the pennying is the problem.

 

[Mecro]

Quote from def:



sure, our brokerage makes money "living off the infrastructure" but a much greater piece of our business is our groups trading/market making operations where wider spreads don't necessarily hurt. I could also argue that penny spreads actually cost a brokerage more due to an increased number of orders which tax infrastructure. Besides, what is a frivolous trade? That makes no sense to me at all. If a buyer and seller meet at a price, isn't that what an auction market is all about?

It works both ways and pennies do matter. 10,000 shares * .01 = 100 bucks; 1 million shares * .01 = 10K. If you are trading larger size - in particular think mutual funds and the institutions, each penny saved adds up to substantial numbers quite quickly.

I'm not necessarily for or against penny increments. My comment though was made to point out your analogy wasn't comparing apples to apples.

Excellent point.

It's not just about the traders. Realize that there is also the institutional buyers as well as regular Joe Schmoe investors. And even the specialists, as scummy as some of them are. The jerkoff that started this thread can't look at the big picture.

Regardless, stop acting like there is no money to be made because of decimalization. Pennies or no pennies, stocks still make moves and don't act like you never got that print 30-40 cents above because the big buyer went market. Happens every week at the least, even in this shitty trading environment.

And if a specialist is playing penny games with you, do not trade him again. Granted, I have certain parameters for stocks, but still, most of the specialists I trade, are not bad guys at all.

 

[Jesse J.]

I bet you wouldn't say "jerk-off" to my face!

And I understand this topic quite well. Yes, quite well.

 

[Bryan Roberts]

Quote from Mecro:

....... The jerkoff that started this thread can't look at the big picture.

Regardless, stop acting like there is no money to be made because of decimalization. Pennies or no pennies, stocks still make moves and don't act like you never got that print 30-40 cents above because the big buyer went market. Happens every week at the least, even in this shitty trading environment.

And if a specialist is playing penny games with you, do not trade him again. Granted, I have certain parameters for stocks, but still, most of the specialists I trade, are not bad guys at all.

what's with the "jerkoff" comment? is that really necessary? it is great that you are doing so well. sounds like you found some good specialist. would you please share with us the names of the stocks these "good guys" trade?

 

[Jesse J.]

this jerkoff.

I pounded the table again and again about going to nickels, and dreams can come true.

Actually, it's a no brainer. That is, if the NYSE big wigs had a brain.

For a 10M salary, grasso should be a bit smarter than to keep a stupid penny system going for over a year, despite massive COMPLAINTS from knowledgeable people.