BOX - Boston Options Exchange

Discussion in 'Options' started by def, Feb 20, 2002.

  1. lpo

    lpo

    ISE is OK so far and I don't mind to get elecronic membership for $500 or so a month if they provide better margins for stocks and index options but they got to follow the Cboe margin rules.This is the main reason so far to back me away from ISE and if BOX is going to provide better margins I don't mind to buy electronic membership for the exchange if they are going to have any like ISE.
     
    #21     Apr 4, 2002
  2. sail

    sail

    metooxx,
    Sorry on floor market making, not on cboe.
     
    #22     Apr 4, 2002
  3. Nice comment. And why do you think us "retail" guys don't feel sorry for you when they bust your trades? Good luck trading at the Box. I'll bet you'll miss Raes. We will soon miss it too since you've ruined it for us and they're changing Raes to have size in the near future... just stay away from CboeDirect.
     
    #23     Apr 5, 2002
  4. We wouldn't leave our old friend RAES, as for CBOE Direct, that is another story...
     
    #24     Apr 5, 2002
  5. sail

    sail

    If you really are a "retail" guy, please be careful. You must realize options (as currently structured) are heavily rigged against you. Options have the potential to be a great trading product, but the playing field needs leveling.
    Just say no to a few option trades a week and see
    how your bottom line improves.

    P.S. You should feel sympathy for the victims of
    arbitrarily busted trades. When you finally win one, I hope they don't decide to make you their next victim.
     
    #25     Apr 5, 2002
  6. Being a retail customer and feeling sorry for the option exchanges, is like being a small fish at feeding time in a school of sharks and worrying if they are hungry.

    The US option exchanges are probably the most slanted liquid market in the world.
     
    #26     Apr 5, 2002
  7. def

    def Sponsor

    navigator,
    sounds to me that you prefer that retail have some kind of priority.

    Granted I work for a market making firm but if I show a price on a screen and I'm the first one with the price, why should a retail order jump ahead of me? The market maker takes the risk of providing the liquidity, at least they should be able to participate on their prices.

    IMO, if retail orders get preference over "professional" flow, wouldn't that be an incentive for the professionals to make wider markets? In short, first come first served is best for all parties IMO. A true level playing field should lead to tighter and more liquid markets for all parties.
     
    #27     Apr 5, 2002
  8. mskl

    mskl

    The CBOE had a rule approved months ago that would allow the DPM to not have to honor any "excess volume" on the same side as small customer orders. They can now turn this function on and traders will only be able to get what they see (in terms of volume). I'm totally ok with this as long as we have continual access to these orders.

    I can understand why the CBOE has this rule as it is there to protect the DPM. However, with this rule, we should now be able to trade against their customer order book when the market is locked/crossed. I have yet to see this.
     
    #28     Apr 5, 2002
  9. Excellent point.
     
    #29     Apr 5, 2002
  10. mskl

    mskl

    for the record. I have seen this new CBOE rule in affect for about 7 equities today.

    Oh to be a DPM, deny access to any of the good trades (the locked/crossed markets) and now you don't have to take any excess volume trades.

    With these rules the CBOE should move to Las Vegas............
     
    #30     Apr 5, 2002