No more bullets per sec

Discussion in 'Order Execution' started by Turlo, Nov 18, 2003.

  1. No way. They love the small E-mini trader. Like Piranah feeding on minnows.
    #21     Nov 18, 2003
  2. HighBid3


    Its as if they want everyone to leave the market. Daytraders are probably responsible for 30% of volume on NYSE, 65% of that are short positions.

    Its like the NYSE is cutting off a limb, that limb is us. Most likely if this is an effect we will have to adapt. But I like haveing one on the by being able to short on the down tick.

    I called a few friends, only a handfull of firms have bullets today and might not have them tomorrow.
    #22     Nov 18, 2003
  3. The administration just wants to keep the market up, in a bubble, at any cost. That's the reason for this!
    #23     Nov 18, 2003
  4. I'll be surprised if they don't address the 10:1 margin issues
    #24     Nov 18, 2003
  5. used them all day today!
    #25     Nov 18, 2003
  6. swinger


    me too... had bullets today. did anyone try to buy bullets and get rejected?
    #26     Nov 18, 2003
  7. You couldn't buy them today at Assent
    #27     Nov 18, 2003
  8. Well, I must admit, bullets should not be allowed, but the uptick rule shouldn't exist either (for liquid stocks). I am going to miss them a lot though, having to wait for an uptick to short really sucks and seems fascist to me. Hopefully the SEC gets their act together and changes short sale rules soon and this shit won't last too long.
    #28     Nov 18, 2003
  9. I agree 100% with this.
    #29     Nov 18, 2003
  10. So this SEC interpretation looks like goes into effect November 21 and seems to specifically focus (at least my read of it) on non-standard married puts used by trading firms where they're really just washing positions between the client book and the firm book at the end of the day as part of the bullet process.

    Everybody's known this was an obvious scam to defeat the tick rule (which should itself just be eliminated) and not a real married put hedge.

    I might have missed it, but it seems like you could still use standard exchange traded options to build a hedged position for multiday use though. Not as convenient as a bullet and carries higher cost aspect (you need the broker to use the most liberal hedged position margin rules to make it potentially palatable), but seems like it would still be allowed - unless I misread the SEC note.

    Did anyone else read it that way?
    #30     Nov 18, 2003