By the no answer I can assume you have only ever been an electronic trader,that gives you absolutely no authority to talk about pit trading especially with such a bullshit statement such as "Pit was a license to print money".If you don't know what you're talking about please shut the fuck up. I totally disagree that a lot of ex pit traders hate electronic trading,99% used to love APT (you better ask someone what that is).The edge in the pit was useful, granted, but just for turning up for work wasn't a guarantee to earn,funny really Goldman,Dean Witter,Cargill etc were funny about giving away free money. Over many years we were able to increase volume every year that included many serious global situations,this decline in volume has been exacerbated by poor management at the exchanges,too many algo's with no regulation encouraged by cheap fees and the failure to listen to the real liquidity providers who are needed now more than ever. BTW this was the second question I asked you that you ignored.If you don't want to participate fully then fuck off to wherever you come from as I don't need a piece of shit with no manners,who doesn't have a fucking clue making himself busy.
The CME also went to block trading in treasuries which was designed to appease the big funds who surprise suprise are never coming back. Changes need to be made
I read an article that stated that 9 out of 10 pit traders fail at electronic trading because the edge they have on the floor is worthless behind the screen. Let me look it up...
The elimination of day trading rate and increase in overnight margin by brokers forced a lot of traders to cut back their position size. Naturally volume falls as a result.
First of all, why the curses and bad language? Do you expect people to be on elite every second of their day and answer immediately? I have not traded in the pits, but spoke with many people from both sides, and the vast majority of non local traders say that electronic platform dramatically eased trading for them, not so for the locals. Now as far as the volume goes, just pull up the charts and compare the volume of any contract that went from the floor to the screen. The trend of much higher volume is evident after the contract hits the screen. Like everywhere else, things can not grow indefinitely, and so is the volume. What is so unnatural about volume contracting in such a harsh environment as we are today, where many funds and traders blow up and many of the bots are being readjusted? ...failure to listen to the real liquidity providers who are needed now more than ever You are obviously biased since you make such statements. There plenty of liquidity providers in electronic world.
So locals who have never traded in the pit know that it made it easier for them to trade electronically even though they had no prior experience,that's a load of shit. I didn't expect volume to grow so significantly indefinitely likewise I didn't expect it to contract by 40+% over a few months,If you think that is a good market where volume has those sorts of fluctuations then you are a prick. How many times have I said that over previous 'disasters' volume remained steady even increased,it isn't now because of the way the exchanges have handled the business over the last 5 years,if you don't understand my point by now you must be a retard. Where are the liquidity providers in the ZN, FGBL,ZB now then you stupid bastard. Basically to me you are everything what's wrong with this business now,you don't have a clue what's going on,what makes the business work,where the future is. I'll bet you don't even trade fixed income,you're just a dickhead who sticks his nose in,do me a favour and piss off.
Where??????????? I kind of needed them today,but in Fixed Income products no-one was playing.Again.Being bid and offered above and below the market but pulling them before they can trade does not count as liquidity and the people who do this are NOT liquidity providers.Also,sort your English out.
Record vol and collapsing volumes are normal for major bear markets. Bear markets do after all bust out all the marginal players, that is never good for volumes. Think 1932 - how many stock market speculators do you think were still around? How many investment pools made it through without blowing up? We have had a bone fide hedge fund, prop desk, and i-bank massacre. The only people left are those who can manage risk, and they don't trade as much size, by definition - especially not in a market like this. When the swings double, you halve your size, other things being equal. So more vol = less size. And with the closing down of many players and deleveraging of the rest, it's an entrenched trend. The volume is unlikely to come roaring back - just look at liquidity in the T-bonds!