How to pull the rug on SPX market makers

Discussion in 'Trading' started by HedgefundTrader2, Aug 17, 2007.

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  1. IB Kevin

    IB Kevin

    When SPX goes 'index hybrid' on 9/25, there will still be only one electronic quoter, which rotates between 5 large market making firms, so spread width may not change much.

    However, booked orders will be able to be traded electronically vs. the current system of floor brokers yelling to order book officials to manually match orders b/t buyer and seller. Therefore this change probably benefits small orders (<10 contracts) as they will trade much faster, and floor brokers will likely keep the larger orders unposted to look for price improvement.
     
    #151     Aug 24, 2007
  2. I was going to bring that up but didn't feel like trying to explain it to "Day Natenberg".

    I got a call a while back from someone from the CBOE telling me that the SPX was going to be on Hybrd Light, and I thought it was already in production. We have a trader that plays between the S and the merc and he tells me that he has been getting a lot faster fills on his small SPX stuff lately. I just figured that they automated matching with the book.
     
    #152     Aug 24, 2007
  3. Floor brokers yelling at each other! LOL! In this modern day and age they don't have computers at CBOE? No wonder these sharks and gators are hungry with wide open mouths. Welcome to the green moat CBOE has dug.
     
    #153     Aug 24, 2007
  4. Kevin,

    Its not worth the effort on a thread like this. day is not interested in any facts he assumes, like many people in the vast anonymity of the Internet that his opinion is the only correct one and its a fact if he believes it. His "system" obviously is pointless since there is no obligation for a MM to back up a public bid or offer with more size.

    Can you imagine if that were true? You could bid for a 1 lot and then sell 500 on your bid if the mm's had to honor it.

    Kev... always good to hear from you my old friend I remember the good old days with Frau Blucher on the old currency floor
     
    #154     Aug 24, 2007
  5. So Gary- how'd you work out on those options this week? Get your spread clipped?

    Gary - did you manage to shrink the SPX pit?

    Us Theoretical rulebook reading guys want to know Mr. Mann


    Thanks,
    CBK
     
    #155     Aug 24, 2007

  6. I have been punching holes in those wide bid and asks all day. Bloodied some of your friends. They will go home " FLAT" shaking their heads what hit em.

    They won't let me out of a put spread, I started sending ones and twos, pretty soon my basket was empty. Saved around $800 dollars on those wide bid and asks!
     
    #156     Aug 24, 2007
  7. Good.. get ready for Monday - you'll be paying up $800....


    Thanks,
    Blaine
     
    #157     Aug 24, 2007
  8. Its not worth meddling with threads that you don't understand. You have no idea how SPX is traded so you won't know it at all.
    Who cares if Market Maker is obligated or not. We force our desired BID and ASK and get our trades executed. I have been doing it all day today. Those bastards were taking it right or left.

    I would suggest you consult a doctor, you seem a little bit unbalanced to me.
     
    #158     Aug 24, 2007
  9. Um.... I wouldn't say that about xflat ........ LOL
     
    #159     Aug 24, 2007

  10. We will level some more contracts on SPX Monday. Losers will be singing the blues in that Castle wrapped around that green moat CBOE has built. You will not win this game with us. We are lot smarter than you are and greed doesn't pay at the end of the day.
     
    #160     Aug 24, 2007
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