Poll: Will the Globex be No More?

[Pa(b)st Prime]

Quote from gnome:

That's a weird and baseless conclusion..

Futures are the primary market for most everything listed OTHER than stocks and currencies. Do you think an Obama Treasury will be pumped about the CBOT's 2% margins on Bond futures if Treasury securities tank like government debt offerings in South America have the past few weeks?

 

[RussellDaytrade]

the afterhours globex seesions are trading well since this extreme volatility accelerated a few weeks ago.

in actuality, leverage is now reduced significantly, as a result of combination of margins increases, and lower index values, the leverage ratios, at full margin, are near less than 10-1.

I'd say the market is well-nigh wrung out, from that perspective.

 

[Pa(b)st Prime]

Quote from RedDuke:

Does anyone know what are relationship between CME guys and Barack after all his is Illinois senator.

Since it looks like he will be our next president, do you think it is good or bad for CME?

He never embraced the Chicago futures community like other Chicago politicians. I posted here once that Sen. Carol Mosley Braun would visit the floor so often we'd joke she should just get on a seat and trade.

Keep in mind Obama doesn't have a free market bone in his body. I'd guess he looks upon the Exchange as parasitic.

 

[gnome]

Quote from Pa(b)st Prime:

Futures are the primary market for most everything listed OTHER than stocks and currencies. Do you think an Obama Treasury will be pumped about the CBOT's 2% margins on Bond futures if Treasury securities tank like government debt offerings in South America have the past few weeks?

Futures were designed as hedging vehicles. High leverage is appropriate. If you're concerned about the leverage for speculators, need they be banned?

 

[austinp]

<i>"Y'all talk like you believe the futures are the "tail that wags the dog"... NOT!"</i>

Wrong.

There was a time when futures were an extension of individual stocks. Those days ended when major funds and institutions embraced the ES as a primary trading vehicle itself.

What do you think happens when breaking news causes activity on a trade desk? Do you think the traders sit and ponder how many x-shares of IBM and y-shares of MSFT to dump? Or do you think they hit "sell" hotkeys on the ES and sort it out later?

Index futures are no longer the dog's tail. They are now the ocean liner's rudder.

 

[austinp]

the globex will not only survive, it will evolve to a point where the pit session of trading for stocks is relevant as pit session of trading for currencies is now.

Look for further globalization of financial markets, more overlap, extended hours of activity into the future. What the FX = currencies are now, the indices will someday be

 

[Pa(b)st Prime]

Quote from gnome:

Futures were designed as hedging vehicles. High leverage is appropriate. If you're concerned about the leverage for speculators, need they be banned?

Sure. If I want to preserve an asset value why would I allow someone to employ leverage counter to my goals?

 

[nkhoi]

Quote from RedDuke:

Does anyone know what are relationship between CME guys and Barack after all his is Illinois senator.

Since it looks like he will be our next president, do you think it is good or bad for CME?

never fear, he is on good term with them;

The employees of Goldman Sachs and UBS gave Obama more than $260,000 combined. His top fundraisers include David Heller, a managing director at Goldman, and Robert Wolf, chief executive of UBS Americas.

 

[Pa(b)st Prime]

Quote from nkhoi:

never fear, he is on good term with them;

The employees of Goldman Sachs and UBS gave Obama more than $260,000 combined. His top fundraisers include David Heller, a managing director at Goldman, and Robert Wolf, chief executive of UBS Americas.

The two firms you mention are part of a consortium that last December announced plans to compete against the CME....

CME stock broke $30 on the news and has never traded there since.

 

[gnome]

Quote from Pa(b)st Prime:

Sure. If I want to preserve an asset value why would I allow someone to employ leverage counter to my goals?

That's crazy. Half of the speculators' trades will win, half will lose. All they really do is increase the market depth.