What will be the end result of the elimation of bullets be on pro firms/traders?

Just an update after speaking with people from other firms, both at dinner and at the Expo.

I may be wrong about how bullets impact some firms...it seems that some of the newer people in the business have really (really) relied on them...so they may have to leave their firms for places that offer alternatives (no, not just us....I'm talking overview here)....or try to adapt their strategies a bit.

The big 3 don't seem too worried at this point. I spoke with Mr. Gitto from Assent, and 2 managers from Generic, and they don't seem overly concerned....but at least a half dozen other "affilliates" did seem pretty upset....

Our guys will be ok, and heck, we can always do with less competition....what the hell...LOL...

I'm sure more doors will open for the serious traders at other firms.
;
Don
 
Don,

I spoke to the reps at one of the two firms you mentioned, and they told me that their firms volume dropped 50% overnight when bullets disappeared. They might not have wanted to seem "overly concerned", but my take on it was that it had a dramatic and painful effect on them.

I don't trade prop, but just wanted to add this information for what it's worth.

-Eric

Quote from Don Bright:

Just an update after speaking with people from other firms, both at dinner and at the Expo.

I may be wrong about how bullets impact some firms...it seems that some of the newer people in the business have really (really) relied on them...so they may have to leave their firms for places that offer alternatives (no, not just us....I'm talking overview here)....or try to adapt their strategies a bit.

The big 3 don't seem too worried at this point. I spoke with Mr. Gitto from Assent, and 2 managers from Generic, and they don't seem overly concerned....but at least a half dozen other "affilliates" did seem pretty upset....

Our guys will be ok, and heck, we can always do with less competition....what the hell...LOL...

I'm sure more doors will open for the serious traders at other firms.
;
Don
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Quoted from EricP,

I spoke to the reps at one of the two firms you mentioned, and they told me that their firms volume dropped 50% overnight when bullets disappeared. They might not have wanted to seem "overly concerned", but my take on it was that it had a dramatic and painful effect on them.


I would say that EricP has totally hit the proverbial "nail" on the head . . . I'm quite certain that bullets were a huge tool in a prop traders arsenal, and that many firms out there are putting on their best "smiley" face and not wanting to give off the perception that they are overly concerned.

Besides, there is a ton of particpants ( stock-traders ) that have made the switch over to trading ES and ZB. Why would you expect the reps of equity shops to put on any "face" that would show "concern"?
 
Quote from cornholetrading:



That was proposed several weeks ago. The only surprise was that the bullets where eliminated so soon. However the top 300 stocks will not necessarily cover the stocks you trade or will help you much if you trade news stocks that are not on the list.
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I hate to break it to you guys, but the proposal is for a two year pilot to eliminate the uptick rule for half of the 600 most liquid stocks in the Russell 1000... not the top 300:

``To select the stocks for the pilot if we were to use the Russell 1000, we would sort the Russell 1000 by average daily dollar volume over the calendar year prior to the start of the pilot and use an objective method that would create <i><b>two</b> samples that should be approximately similar in average market value and average volume</i>.''

In other words, they want a "control group" for this experiment. Regulation through experimentation is an interesting concept, to say the least...

If this proposal is accepted without substantial changes then it is a virtual guarantee that half of the most liquid stocks will still have the rule for at least two years.
 
Quote from EricP:

Don,

I spoke to the reps at one of the two firms you mentioned, and they told me that their firms volume dropped 50% overnight when bullets disappeared. They might not have wanted to seem "overly concerned", but my take on it was that it had a dramatic and painful effect on them.

I don't trade prop, but just wanted to add this information for what it's worth.

-Eric
More...

Exactly; only a fool would make light of this ...
 
If traders are going to leave the business over a loophole in the rules.....they probably shouldn't be in the business in the first place. Wouldn't it be easier to just learn how to trade?
 
Let's be honest here.

At the margin, not allowing the use of bullets will take away a significant tool for the trader, AND an important source of revenues for the brokerage house.

To try and "spin" this any other possible way is absurd.
 
Quote from spyderman:

If traders are going to leave the business over a loophole in the rules.....they probably shouldn't be in the business in the first place. Wouldn't it be easier to just learn how to trade?
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Maybe it's just the shakeout the industry needs before it becomes good again.
 
That's exactly what I'm thinking/hoping. Probably just a coincidence, but it seems that the number of quality trading opportunities has increased substantially for me in the past 8 weeks or so. I hope it continues.

Fewer traders = More opportunities per trader

-Eric



Quote from Mecro:



Maybe it's just the shakeout the industry needs before it becomes good again.
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