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Guest
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 Posted:
Thu Nov 10, 2005 5:00 pm Post subject:
Electronic vs. Out Cry |
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There are a lot of traders getting back into the markets after electronic
trading have
been accepted. I agree that this is the only way to go. The ECNs are getting
a larger
share of the securities market and the futures markets are proving at the
long last
that open out cry pit trading can't give FIFO or guarantee the best
available price.
I started trading futures in 1970 and have been an AP, CTA and CPO in
addition
to being a member of a traditional futures exchange. I realized the
potential for
electronic trading in the early 1980s and purchased a member seat on the
very
first electronic commodity exchange known as INTEX. At the same time that
INTEX was trying to get started, another new exchange called LIFFE was
starting
in England. LIFFE was a traditional open out cry pit exchange. Of course,
the
industry accepted the traditional exchange and scorned the new electronic
one.
INTEX started trading gold as their first contract but the management never
realized that the retail brokers are not the ones that make an exchange go.
Mr. Peake, one of the organizers of INTEX, finally got Merrill Lynch to make
the trading available to their brokers on their desk quote machines. But
there
was never an effort made to get "locals" or market makers involved. I tried
to get a clearing arrangement but it wasn't possible. Also, back then one
did not have all of the trading platforms and the Internet. Remote trading
cost several thousand dollars a month. INTEX was just years ahead of its
time. Now I am glad to see the traditional exchanges, including LIFFE,
offering electronic trading. I believe in the years ahead we will see
electronic
trading replacing floor/pit trading in both securities and futures.
"Lubow" <lubow@covad.net> wrote in message
news:7040d$436ce2d3$44a68a53$19921@msgid.meganewsservers.com...
I've returned to day trading futures after an 18 year hiatus. Eighteen
years ago,
the problem was that the best fills were produced by the higher commission
brokers.
Everything was open outcry. Globex was only in the planning stage back
then.
The E-CBOT fills on a FIFO basis. For me, this electronic trading is the
way to go.
I only hope that copper and coffee can move to electronic trading because
I found
those to be the best day trading vehicles.
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