just be alexander, frank has you on repeat. for equities, no info needs to be disclosed for regulatory requirements. the rest of what you said are your opinions, i'll leave it at that. i'm not making anyone into anything that there isn't already some basis for. if you or others don't want to read between those lines, fine, but there _is_ value knowing what's what, rumors or not, whether you openly admit it or not. for instance, if the traders in a soon to be known firm that had some majorly fraudulent things go down, could have got wiff of the smoke billowing there, a lot of money could have been saved. no information flow there though beforehand and now people are getting screwed. it pays to listen, because even bullshit can be informative... especially bullshit.
http://www1.worldbank.org/finance/html/self-regulation-in-developing-.html Q Regulation of Market Transactions Self-regulation of market transactions ensures that they are executed and completed by each member according to pre-agreed rules and modalities. To this purpose, the SRO needs to exercise effective market and system surveillance and identify rules of information disclosure and sharing. Information is crucial for effective self-regulation: with limited information or with deliberately hidden information by members on their performance, there are few incentives for honest and prudent behavior. ... Reputational capital. The reputational capital of a financial institution is the value of the institutionâs commitment not to breach (implicit or explicit) contracts and take risks that might endanger its compliance with contractual obligations. If the institution breaks the promise underlying the contracts, its reputational capital may be damaged or destroyed. Reputational capital is a complex set of variables that signal at any point in time the institutionâs ability and willingness to fulfill its obligations. The most relevant variables are as follows: * the institutionâs long-term mission and strategy, * market presence and established name, * market knowledge and information, * financial strength and profitability, * organizational and governance structure, * risk management capacity, * record of compliance with legal and financial obligations, * quality of service and advice delivered, * quality of projects financed, * quality and ethics of management and personnel, and * transparency. For an institution to invest in reputational capital, honesty and prudence should be rewarded. An appropriate rewards structure links the institutionâs franchise value to its past record of business conduct and practice: as the institution proves dishonest or imprudent, its counterparties and customers withdraw or refrain from dealing with it, causing it to lose all future profits. Thus, the higher the franchise value deriving from a reputation of being an honest and prudent institution, the stronger the incentive to act honestly and prudently and to forego short-term gains from dishonest and imprudent behavior, and correlatively higher is the social return from reputational capital. UQ
http://en.wikipedia.org/wiki/Honesty Q Honesty refers to a facet of moral character and denotes positive, virtuous attributes such as integrity, truthfulness, and straightforwardness along with the absence of lying, cheating, or theft[1]. ... Others would not define preferable behaviors as dishonest by reasoning that they are not intended to deceive others for personal gain, but the intent is more noble in character, for example sparing people of opinions that will upset them. UQ http://en.wikipedia.org/wiki/Prudence Q Prudence is the characteristic of exercising sound judgment in practical affairs. It is classically considered to be a virtue, and in particular one of the four Cardinal virtues (which are, with the three theological virtues, part of the seven virtues). ... For instance, a stock broker using his experience and all the data available to him decides that it is beneficial to sell stock A at 2PM tomorrow and buy stock B today. The content of the decision (e.g., the stock, amount, time and means) is the product of an act of prudence, while the actual carrying out of the decision may involve other virtues like fortitude (doing it in spite of fear of failure) and justice (doing his job well out of justice to his company and his family). The actual actâs âgoodnessâ is measured against that original decision made through prudence.[2] UQ
Before the thread degenerates into white noise - any documentation confirming or denying Mr Bone's comment on tagged orders going to back of queue?
http://en.wikipedia.org/wiki/Opinion "An opinion is a subjective statement or thought about an issue or topic, and is the result of emotion or interpretation of facts. An opinion may be supported by an argument, although people may draw opposing opinions from the same set of facts. Opinions rarely change without new arguments being presented. However, it can be reasoned that one opinion is better supported by the facts than another by analysing the supporting arguments.[1] An opinion may be the result of a person's perspective, understanding, particular feelings, beliefs, and desires. In casual use, the term opinion may refer to unsubstantiated information, in contrast to knowledge and fact-based beliefs." http://en.wikipedia.org/wiki/Fact "The word fact can refer to verified information about past or present circumstances or events which are presented as objective reality. In science, it means a provable concept.[1][2]" http://en.wikipedia.org/wiki/Fact_(disambiguation) "A fact is an idea which is considered to be wholly and absolutely true."
I did a little research this morning and here is the only thing I found: CME makes it voluntarily unclear if they give priority to manual tag 50 orders or not. Bone must be right: "CME began requiring members utilizing ATS systems to register as such in 2006; NYMEX and COMEX began registration in Q4 2009. A trader who primarily enters orders manually but also uses automated spreading activity is not considered an ATS and is not required to register as such. Accordingly, we can monitor the volume of executed orders emanating from ATSs vs. the entirety of orders. Similarly, we can monitor the volume of message traffic, i.e., orders that might or might not ultimately be filled." Also only member or persons subject to reduced fees have to register their ATS. So to get priority, just trade automated through a front end, automate only the critical part where speed is needed or just do what you want if you are not a member. http://www.cmegroup.com/education/files/Algo_and_HFT_Trading_0610.pdf http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv09-392.pdf
Rereading I don't know if they mean "just monitor" or "monitor and act" on message traffic...Whatever...
On the other side, there is this in the second document: "19. How does the messaging policy apply to ATSs? ATSs are treated like any other market participant and are subject to the messaging policy that applies to all message flow other than that of registered market makers who may be subject to different volume ratio benchmarks." So I don't know what to think but I would still be reluctant to register my ATS to CME.
Thanks for the legwork. FAQ 19 seems to infirm his theory -- unless he can point to contradictory documents.
Yes, but it seems they say ATS are like everybody else for messaging policy( they are subject to same ratios), they don't say they are like everybody else in matching algorithms. This paragraph is about messaging policy. I believe Bone didn't invent it out of the blue. It is the first time I find something unclear in CME rules.