Puts/conversions

B

burnin

As we all found out this morning, our livelyhood has been delivered a death sentence.

DON BRIGHT _ Please weigh in with your opinion.

How did the daytrading firms let this happen.
Being handcuffed and only able to play the long side, the day of high volume successful scalpers is over. Liquidity is now severely hampered.

Not to mention that the specialist will be able to short downticks when no one else can.

Simple example
stock is .35 bid at .37 6s print on dwn tick
NY has 50k offered at 7, and spoos are tanking.

YOU CANT GET SHORT.

Sure you can offer some 7s with NY but I will guarentee one two things will happen.
Either you wont get fille if the 7s trade small OR u will get filled, but you sure as hell wont want them. They will be in your face immediately.

IS THIS ANYWAY TO TRADE??

HELLO futures. Gonna be the only game in town for daytraders.

DON- Your opinions on this issue would be greatly appreciated by the ET community.

Is there anything we can do to keep the rules as they were?
Is this new rule written in stone?
 
Quote from burnin:



Not to mention that the specialist will be able to short downticks when no one else can.
More...


Are they changing this rule? I thought specialists could only get short on an uptick?
 
Specs can't initiate downticks so they don't have that edge. Nonetheless THIS BLOWS. I guess I am gonna have to turn in my membership papers to cotton this AM. Was on the fence until I heard this news.
 
Specs. may not be bale to initiate downticks, HOWEVER, there are MANY loopholes.

The spec. can take part in a downtick. Say 1k bid, if I'm not mistaken, and someone correct me if I am, someone goes to sell 500 at the bid the spec can split it and also sell 500 on the downtick bid.

That the spec. can NEVER sell a downtick or buy an uptick is a myth.
 
Quote from GATrader:

Specs can't initiate downticks so they don't have that edge. Nonetheless THIS BLOWS. I guess I am gonna have to turn in my membership papers to cotton this AM. Was on the fence until I heard this news.
More...

Very much in agreement with that.
 
specialist can short on downtick as long as he doesn't initiate downtick. obviously he has friends who do it for him.
 
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