There is a bunch of specialist readers who want to piggy back. Whats good for the specialist, is good for the surrogate specialists as well. peace axeman
I posted the following in the other message board about decimalization. "I've only been a professional trader since decimals have been around. Never traded sixteenths or eighths. For those out there who have traded professionally for a while (before decimals), will this make trading a lot easier, or just a little? I know I get pennied every so often. Will this be the biggest difference? Obviously, the term "pennied" would then no longer exist." Any thoughts?
the problem with pennies is lack of liquidity at each price point, because there are too many price points. With sub-pennies, it is completely rediculous. Imagine if you went to an auction to buy a vase and the bidding was like this "$100, do I hear $100.001 ?" I have nothing against using decimals instead of fractions, but there is no real benefit to using penny increments. $.05 increments would be just fine for most stocks.
If you traded before decimals...then you know that it was easier to make money when the minimal move equaled $62.50...now it is only 10 bucks...less front running also M
I think you would get a lot of Nasdaq traders back in the game too. I could see another heyday for the L2 junkies, especially with how much rates have come down since the move to decimals. We might get more defined support and resistance like we used to get. I would love to have the wider spreads, with supersoes quick executions, combined with the lower commission rates. Then again we will have to see if it actually happens or if it is all talk.
Bring back nickels. Bring down transaction costs for institutions so everyone can do business again. I guarantee nickels would bring back jobs to wall street, traders to the markets and perhaps a bull market. President Bush should get on this issue. How do we email the white house and our congressmen and women.
I would have been happier to hear him say "the whole issue of having physical specialists vs a NYSE ecn needs to be looked at" more carefully. Let's get the NYSE all electronic. Decimals are better for us, not as good for the mms/specialists. Let's keep decimals, lose the specialists. my .022 worth
Be careful what you wish for. A bunch of you seem to think you will be back in the salad days if only you get rid of pennies. It's not going to happen. Lack of liquidity? Get real, is it so terribly hard to go down a few levels? This is a specialist and MM gift, pure and simple. Do you actually think the SEC has your interests at heart? If they roll this back, what's next? Outlawing ecn's, or maybe imposing cancellation fees? Or maybe they go for the big one, no market making by non-members. Can't happen? That was exactly the way it was for most of recorded history and still is at the options exchanges.
god, what a load of hogwash... bring back nickels and "perhaps" we get a bull market? i dont give a crap about lowering unemployment on wall street. yeah, president bush should drop world peace and push nickel spreads. its just funnelling everything back through MMs and specialists. same as blacking out ISLD due to QQQ volume. the purpsoe of the "the market" is not to guarantee MM or specialists a windfall. if they dont like the system, they should quit.... i bet someone else will step in! i have a better idea: lets fire all the crooks and go all electronic..