PIMCO on Floor Vs. Screen

bone · Apr 22, 2003

Maverick:

OK, tough guy. Go stand in the Ten-Year Note Pit. Open-outcry Superman. Tell either the Morgan Stanley or JPM floor broker that your name is Maverick and that you will take a 500-lot. Make sure the arb clerk with the headset standing right behind him knows that your name is Maverick. I'll take it from there.

OVERtheLINE · Apr 22, 2003

Quote from bone:

Maverick:

OK, tough guy. Go stand in the Ten-Year Note Pit. Open-outcry Superman. Tell either the Morgan Stanley or JPM floor broker that your name is Maverick and that you will take a 500-lot. Make sure the arb clerk with the headset standing right behind him knows that your name is Maverick. I'll take it from there.

while your there maverick,
tell billy savino(broker for m.stanley)..... Jeff said hi and
misses hanging out with the guys at centro

Maverick74 · Apr 22, 2003

Quote from bone:

Maverick:

OK, tough guy. Go stand in the Ten-Year Note Pit. Open-outcry Superman. Tell either the Morgan Stanley or JPM floor broker that your name is Maverick and that you will take a 500-lot. Make sure the arb clerk with the headset standing right behind him knows that your name is Maverick. I'll take it from there.

Hey Bone, can you tell me what that statement has to do with your arguement?

Oh, and I thought you didn't trade CBOT products because their fees are too high, what gives?

I got hand it to you Bone, you really add a lot of depth and quality to the ET board. I hope all the newbies on the board are taking notes. You provide so much insight.

Maverick74 · Apr 22, 2003

Quote from OVERtheLINE:

while your there maverick,
tell billy savino(broker for m.stanley)..... Jeff said hi and
misses hanging out with the guys at centro

I'll do that if I have a minute.

Maverick74 · Apr 22, 2003

Quote from GATrader:

If you had the choice of trading on the floor vs. screen based, which would you pick? Is being on the floor in an open outcry environment far better edge wise than the "sterile" environment of the screen? I am debating whether the floor edge is worth it-pain is the ass to apply 1.)$1,000 per month lease 2)NFA paperwork, 3)floor broker application costs of $1700.

Any thoughts as to why it would be worth all that trouble and expense? Thanks

You can PM me if you want. I'll answer any questions you have and point you in the right direction.

Maverick74 · Apr 22, 2003

Quote from OVERtheLINE:

while your there maverick,
tell billy savino(broker for m.stanley)..... Jeff said hi and
misses hanging out with the guys at centro

Is that WJS from Winnetka?

Cutten · Sep 13, 2003

Quote from jaming5002:

In further support of Maverick, were any of you around during the Crash of 87? Because if you were, you'd know that every market maker in New York decided to turn of their Nasdaq screens, take their phone off the hook, and stop making markets. Chicago may not be perfect, but its far better than the screens.

I'm not so sure - the screens of LIFFE and Eurex performed very well on Sep 11th, and there was liquidity all the way down despite an unprecedented 15% fall in less than an hour.

bone · Sep 13, 2003

Only 15 to 20% of the Ten Year and US Bond futures are being done in the pit now. The Dow pit and financial options are the only thing surviving in that new building. The CBOT will also have to find a way to reduce the screen costs by about 50% if they expect to survive against the Eurex/Clearing Corp. juggernaut next year. The CBOT won't be able to keep their franchise contracts if every trader and dealer out there can save $1.25 each turn on the Eurex - and not have to own an AM or Full membership on top of it.

Maverick74 · Sep 13, 2003

Quote from bone:

Only 15 to 20% of the Ten Year and US Bond futures are being done in the pit now. The Dow pit and financial options are the only thing surviving in that new building. The CBOT will also have to find a way to reduce the screen costs by about 50% if they expect to survive against the Eurex/Clearing Corp. juggernaut next year. The CBOT won't be able to keep their franchise contracts if every trader and dealer out there can save $1.25 each turn on the Eurex - and not have to own an AM or Full membership on top of it.

Actually here is a rundown of the pits and which ones are still active. Most of the Dow is on the screen, I would say 20% to 30% of the contracts are done in the pit, which comes out to about 50% of the notional value. The fed funds contract is one of the most successful contracts in the history of the CBOT. I would say 95% of the order flow is in the pit. Also the 2 year note and the 10 year interest rate swaps futures have about 80% to 90% of the order flow going through the pit. Then in the Ag room that is all pit. Corn, soybeans, soymeal and soybean oil, oats, and wheat are all done mostly in the pit. The 5 year, 10 year notes and the 30 year bonds are mostly screen traded. I would say 90% of the order flow for spreads are done in the pit and that seems to be why the pits are there for those contracts. Now as far as the options, not even close. I would say 99% pit. The options on 2 years, 5 years, 10 years, 30 year bonds, fed funds and all the ag options. In fact I think the cbot does more options then futures contract, at least its very close.

nitro · Sep 13, 2003

Quote from Maverick74:

... Most of the Dow is on the screen, I would say 20% to 30% of the contracts are done in the pit, which comes out to about 50% of the notional value. ...

What percentage of the screen traded YM originates from the $10 YM traders (the pit) arbing with the $5 YM (screen) contract?

nitro