The tide is turning for the specialists!!!

Quote from AAAintheBeltway:



I am planning a doctoral dissertation in anthropology, "The Demise of Floor Trading: A Modern Day Paradigm for Margaret Mead's Lost Polynesian Eden."

My thesis is the floor represents our traditional culture, dating from before the turn of the 19th century. It was a warm, people-intensive culture, based on personal relationships and the elaborate ritual of the "opening bell", the "crowd", the "Post" and, of course, the charismatic ruler-priest, "the specialist."

The participants in this culture had established over generations a highly organized culture with many symbiotic relationships. The culture was suprisingly stratified, with group members forced to wear costumes to identify their status or lack thereof, eg, runner, clerk, 2$ broker, etc. They enjoyed a ribald environment, with continuous nightly male bonding rituals, but incongruously worshipped a series of goddess-prophets. First there was the hydra-headed Elaine Garzarelli, followed by the reign of Abbey, queen of Sachs, and then the oddly hypnotic Maria from the make believe land of Bubblevision.

Sadly, this tribe fell increasingly behind rival tribes, who embraced new technologies. The philistines from the land of Nasdaq became an increasingly threatening presence on their very borders, until a great bear appeared and devoured many of their tribe. Then an even more threatening series of rivals appeared. One from a neighboring Island, was particularly aggressive. The Island culture was a strange one indeed. It disdained any and all personal contact. All business was done over computer networks. Their religion was just as heretical. They had no "Specialist" and gloried in his absence.

The final chapter in this struggle of civilizations has yet to be written, yet it appears inevitable that the floor will join other bypassed cultures on the scrap heap of history. Such is progress.

Great Job AAA....and much like Jules Verne's "Time Machine" when the machines and "techno-types" take over, then all the above ground citizens turn into mindless sheep, without knowledge or free will to remember the days before everything was automated for them.

Electronic order matching is what we all would like for our "investments" and even the video game of "dancing otc prices" ...but, for a long time to come, I really feel that someone has to take some risk.

When my brother was in Egypt, he spent a few days with one of the larger trading firms. They can only place orders, have no clue about "making markets" (they are anxious to learn), and have no real concept about free markets.

When everyone "turns off the machines" because there is no marketplace, a sadness will permeate the air, and we will harken back to a time when the Bull and Bear of capitalism ran free and single place markets made it possible for econimies to grow and flourish.

But, I'm not too worried, we made it past Jules Verne, and we even lived through 1984 without Orwellian prophecies coming true. And, as support for my discussion, 1987 proved that we not only want, but need human intervention for survival.

Fix the system, fire the bad Specialists, watch the merger of OtC and Open Outcry (ala Amex and Naz), and let's all work together to keep Capitalism marching forward for a few decades to come.

What I fear most, seriously, is that some of the OtC proponents better beware what they wish for, for if it happens, they will have to find jobs (yuck, who wants a job).

(All the above posted in good nature to you AAA, with all the respect you have earned on the board).

And, agaain, nice story...!!!


Don:)
 
Tend to agree with Mr. Bright.

As long as people are alive we will trade. When they stifle the free ones, 'black markets' pop up.

On the Orwell thing, though, I must regretfully disagree.

Keeping markets free is what we've been fighting for in the US for centuries. It's the essence of the Bill of Rights; liberty necessitates property rights.
 
i hope the tide doesn't turn for the specialist. If people don't like the way the NYSE trades, they should trade Nazdaq, or they can get butt raped by the amex mm's.

If the tide truly does turn, it will mean an end to a profitable way of trading for many listed traders. Pls take ecn's elsewhere :))
 
Quote from Casey30:

I noticed a news article today out of Reuters, also out of WSJ early today on Fidelity urging that the specialist system be changed or eliminated.

http://story.news.yahoo.com/news?tmpl=story&u=/nm/20031014/bs_nm/financial_nyse_fidelity_dc_4


Check it out. Down towards the bottom of the article there are a few others lobbying for change. Finally the support for the specialist system is crumbling.


Obviously it won't be anytime soon, but it is certainly something to look forward to.


Hmmmmmm!

http://www.timesonline.co.uk/article/0,,5-861038,00.html
 
Quote from Sardo_Numspa:

I like the specialist system. Specialists are boringly predictable most of the time and the sharp trader can profit from their patterns. I don't find electronic markets any more "fair," whatever that means. It's like blackjack versus poker. Blackjack players like the predictably of a statistically driven game. Poker players like the psychology of going one-on-one with another great player.

Actually as a poker player, I like the psychology of being at the tables when a tourist sits down with his girlfriend watching him play.
 
Why?

nitro :confused:
Quote from Stock_Lover:



Actually as a poker player, I like the psychology of being at the tables when a tourist sits down with his girlfriend watching him play.
 
Quote from nitro:

Why?

nitro :confused:

Come on Nitro, you know this answer. (If I may be so bold as to guess why Mr. Stock Lover likes it when a poker player sits down with his girlfriend).

1. Showing off his bravado.
2. Tends to have lots of "tells" like "winking at his girlfriend" with a "watch me" attitude.
3. Tends to bet more than he should.
4. Sloppy playing style.
5. Won't hang around long, so he plays every hand.

(Make sense?)

Don
 
Quote from C Robinson:

i was waiting for something like this....personally i thought there would be some type of class action lawsuit but i guess they are trying to avoid that...but this seems like an obvious admission of guilt:

http://www.boston.com/business/markets/articles/2003/10/23/nyse_to_reimburse_trading_scam_victims/

let's see...hmmmmmmmm ....6 years times "blank" shares a day times .025 cents a share..........hey could i get that in the form of a cashiers check?????

Yeah, it looks like current traders may get a good chunk of change. Filings are in I guess, but the wait may be long. We just had one trader get $30K or so from a class action from 4 years ago.

Don
 
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