Please support BOX and IB and kick CBOE's ass
- Thread starter NoMoreOptions
- Start date
But remember that two sided may not mean making a market in an option. It could be me bidding 0.05 to close (GTC to get priority in the book) and then someday in the future selling the same option (to open) at another price.
With the "market making rules" I would have to cancel my GTC buy order at 0.05 before I can enter a new sale.
With the "market making rules" I would have to cancel my GTC buy order at 0.05 before I can enter a new sale.
If we don't think we have some sort edge, than what are we doing trying to make a living at this. The edge MMs had went away in the late nineties; these rules are just a reaction to that. There is currently tight spreads and ample liquidity in the big optionable stocks. MMs and CSs are converging down where the CS is. All these complaints about this fee or that limitation is all crap. I'll reprise some of my earlier thoughts
1. It does cost an exchange to handle your order, maybe not as much as they charge, but servers don't grow on trees. Has anybody really thought about the long term business model of the Box. What you may not understand is that your commissions are subsidised from the payment for order flow that many people complain about. How is the BOX going to sustain itself in this CS nirvanna where they trade for free and MMs carry all the water. They'll have a go at it doing this until either the number of players gets cut in half and they can raise fees for CS or give MMs more edge for underwriting the cash flow.
2. Honoring bids and offers, since this seems to be mostly associated with pick off orders, you guys can go fuck yourselves. Nobody, whether MM, CS or BD, is there to take a bullet for you. Of all the issues with exchange listed options, this is the only one that makes me think less of the people who complain about it. Your basically complaining about not being able to screw somebody else over and then crying when the tables get turned on you while trying to do so.
3. The two sided market thing is BS, but it is their exchange and you could join. PCX seats are going for a mear $14,000 and their volume is the same as five or six years ago. You could make back the cost of membership in just a week.
I've got to go for a few hours, so please flame away in my absence.
1. It does cost an exchange to handle your order, maybe not as much as they charge, but servers don't grow on trees. Has anybody really thought about the long term business model of the Box. What you may not understand is that your commissions are subsidised from the payment for order flow that many people complain about. How is the BOX going to sustain itself in this CS nirvanna where they trade for free and MMs carry all the water. They'll have a go at it doing this until either the number of players gets cut in half and they can raise fees for CS or give MMs more edge for underwriting the cash flow.
2. Honoring bids and offers, since this seems to be mostly associated with pick off orders, you guys can go fuck yourselves. Nobody, whether MM, CS or BD, is there to take a bullet for you. Of all the issues with exchange listed options, this is the only one that makes me think less of the people who complain about it. Your basically complaining about not being able to screw somebody else over and then crying when the tables get turned on you while trying to do so.
3. The two sided market thing is BS, but it is their exchange and you could join. PCX seats are going for a mear $14,000 and their volume is the same as five or six years ago. You could make back the cost of membership in just a week.
I've got to go for a few hours, so please flame away in my absence.
Well said, sooner or later someone will figure out that this aint the best thing since sliced bread. Anyone know what the rules are going to be as far as getting your bids/offers posted ? What kind of a size minimum would there be to get your bid posted ? How great would it be to have a 1 cent wide market, go to lift the offer, and find out it is only a 2-lot
I'm guessing there would have to be a minimum of 50 or so to get it posted, otherwise good luck guessing what the real market is, cuz some 2-lot piker could then be the best 3 bids or offers !!!!!!!
Any thoughts appreciated.........
Vega
Yes, I know I could try and go to the BOX website, but I'm too lazy
I'm guessing there would have to be a minimum of 50 or so to get it posted, otherwise good luck guessing what the real market is, cuz some 2-lot piker could then be the best 3 bids or offers !!!!!!!Any thoughts appreciated.........
Vega
Yes, I know I could try and go to the BOX website, but I'm too lazy
Quote from corvus:
Great, I can get the $14k, now can someone show me how to make that back in a week?
Sure, just get your membership, and then you can save MILLIONS on not having to pay cancel fees
or by being able to make 2-sided markets:eek: Just kidding, I'm done with this whole BOX thing................until someone else writes something that changes my mind
Vega