i remember eddie was somewhat connected at the NYSE....what is the word from the floor guys? it just seems like since all this negative focus, the specialist have been even tougher than normal.
The tide is turning for the specialists!!!
- Thread starter Casey30
- Start date
These guys clearly have a conflict of interest when trying to make a fair and orderly market, and at the same time trading for their own best interest. While elimination would cause the same issues encountered in trading the NASDAQ, they have to be regulated somehow. These guys are crooks, with frontrunning, shakeouts for no reason, and many of the other tricks they use to make millions, I have no sympathy for them at all. How can an orderely market be made, when a "human interest" (ie. a long or short specialist account) exists to influence the stock?
Eddie is actually here in Vegas, but we had Jeff Dewan there on the floor last week. He thinks that there is a "shape up or ship out" kind of aura around the place. There "watching their p's and q's" (CYA, of course).....and this is probably a good thing!!
Don
Mr. Sinister,
I agree with you wholeheartedly. How can things be more blatantly obvious ? The conflict of interest issue is extremely valid. Unfortunately, our interim CEO, Reed, did not actually help the situation with his recent stipulation that "there are no inherent flaws with the Specialist system" (or something to that effect.....).
Nasdaq is NOT perfect by any stretch, but it has gotten better, and that is largely due to automation and competition.
NYSE is a dinosaur.......specialists are thieves.
Let's hope for change !!!
I agree with you wholeheartedly. How can things be more blatantly obvious ? The conflict of interest issue is extremely valid. Unfortunately, our interim CEO, Reed, did not actually help the situation with his recent stipulation that "there are no inherent flaws with the Specialist system" (or something to that effect.....).
Nasdaq is NOT perfect by any stretch, but it has gotten better, and that is largely due to automation and competition.
NYSE is a dinosaur.......specialists are thieves.
Let's hope for change !!!
OK (for debate, I'll play"Devil's Advocate").
How would you handle a position on the floor where you are governed by rules that could cost you your job? You have simply a "salaried job"....no "profit sharing" from your trading (in most cases), and you have millions of shares coming in daily, buys and sells...some with prices some without.
The Specialist knows that he cannot lose money either, since he will be fired. He cannot violate rules (yes, some bad apples in every field may have violations), for fear of being barred from the industry for life.
Not too many people (any more) who are competent enough to handle billions of dollars every month.
If we "fragment" the market (ala OTC), then there is no one responsible for anything. 500 terminals may just shut down and walk away. So that is obviously not an answer.
We, as traders, choose to play this game, knowing full well all the pitfalls involved. Those that don't like the game, shouldn't play. Those who don't like the odds in roulette, shouldn't play (actually no one should play roulette)...
The trading markets give capitalists an opportunity, not a guarnteed check every month (not many of those around any more either).
If you're going into this blindly, that is the fault of the trader. If you join a poker game, not knowing that some people bluff, tell, etc., then you do so at your own risk. If someone actually believes that a "perfect market" would allow for profits, they are very naive.
Just points to ponder....we are living in interesting times....and the "Times they are a' changin'.... I just hope that the "game" will be around for a long time to come....traders would hate to have (yuk) "real" jobs.
Don
In your scenario, the laws of supply and demand should take over. In the case of an extreme selloff, prices will plummet, and stop losses will fie off, driving prices down.
I don't believe the Specialists stepped "in front" of the 1987 crash, did they ? Did they really soften the blow, and lose millions in the process ? I sincerely doubt it.
Let the laws of supply and demand take hold by way of automation. There is no room for a manual intermediary in today's world.
I don't believe the Specialists stepped "in front" of the 1987 crash, did they ? Did they really soften the blow, and lose millions in the process ? I sincerely doubt it.
Let the laws of supply and demand take hold by way of automation. There is no room for a manual intermediary in today's world.
There will be more "fair" play for the computerized trading backed by hedge funds and IBs. There will be better fills for institutions.
Its a matter of who gets the money. This is what happened to the NASDAQ.
The NYSE wants volume. They are losing volume to other exchanges. They may have to "sacrifice" the old specialist system but in turn they increase their overall business and in the process become "idolized" for their improvement. Its not just the heat of the SEC but the LOSS of business to tranactions done away from the floor that is pushing this through.
The evolution of the NASDAQ took out many "manual" day traders. I expect the same thing to happen for the NYSE. In the long run, any change will reduce the effectiveness of day trading listed stocks. Pro firms who push NYSE trading will be negatively affected. As in life the strong shall inherit the market.
GOOD luck and GOOD trading.
Its a matter of who gets the money. This is what happened to the NASDAQ.
The NYSE wants volume. They are losing volume to other exchanges. They may have to "sacrifice" the old specialist system but in turn they increase their overall business and in the process become "idolized" for their improvement. Its not just the heat of the SEC but the LOSS of business to tranactions done away from the floor that is pushing this through.
The evolution of the NASDAQ took out many "manual" day traders. I expect the same thing to happen for the NYSE. In the long run, any change will reduce the effectiveness of day trading listed stocks. Pro firms who push NYSE trading will be negatively affected. As in life the strong shall inherit the market.
GOOD luck and GOOD trading.
reply to Hayman
"I don't believe the Specialists stepped "in front" of the 1987 crash, did they ? Did they really soften the blow, and lose millions in the process ? I sincerely doubt it."
having been on a trading floor in 87 I can tell you that everyone on the street was buying and everyone was deeply under water......specialists included......several little firms went under...taken over by MER, etc......that was the start of the real big boys taking over the specialist operations......the powers to be called the White House........on tuesday mid-day......the broad tape read a who's who of companies announcing buy backs....IBM, BNI, UNP, F, GM, etc.........that saved most of our asses!
"I don't believe the Specialists stepped "in front" of the 1987 crash, did they ? Did they really soften the blow, and lose millions in the process ? I sincerely doubt it."
having been on a trading floor in 87 I can tell you that everyone on the street was buying and everyone was deeply under water......specialists included......several little firms went under...taken over by MER, etc......that was the start of the real big boys taking over the specialist operations......the powers to be called the White House........on tuesday mid-day......the broad tape read a who's who of companies announcing buy backs....IBM, BNI, UNP, F, GM, etc.........that saved most of our asses!
I agree with the "supply and demand" theory, but for it work properly, in my opinion, you must have some "place" some "where" for the orders to be sorted out and matched. So often, it is much better to simply "stop trading" the stock, let the outside influences settle down, have a new price re-opening.....vs. the wild swings of "stop triggers" (wait until traders get all their stops triggered, and then the stock bounces right back... as happens so often anyway...then we'll really have an outcry here on the board).
I really feel that we need some "responsible party" in the marketplace.
Good points, we shall all see over the next few years.
Don