"Box has argued that open outcry trading is better for large transactions and that its new trading floor would encourage better participation in large trades." Wow, the Toronto Stock Exchange knows better than CBOE. You know nothing, Jon Snow. I mean, the CBOE electronically facilitates block trades all the time - their pits, which were functional for decades, became irrelevant to institutional investors and big traders. You're not going to get the appropriate block trade market makers to sit in a sanitary white room with glass doors and no decent windows staring at each other in a very old building at the end of LaSalle Street in Chicago when they can make exchange markets and dark pool markets to their heart's content sitting in the comfort of their home office. From my experience, dark pools and discrete OTC/institutional brokers and the RFQ electronic system for block trades will always be superior to "a pit". Pit market makers just look for ways to front run orders unless he has floor broker paper to lean on - which defeats the purpose. Technology has truly made the trading pit irrelevant, and very large block trades absolutely require discretion - hence the popularity among institutions with dark pools.
Videos of the pits with the guys at certain positions wearing padding and bumping each other all day were what convinced me to develop automated trading! It was a humanitarian move...
Maxpi.. bumping each other was not a big deal.. You know what the worse was , for me at least? A $2 broker in front of me- in his mid 60's , hacking and coughing all day, with dentures.(so now you can imagine the spray pattern...lol) .. occasionally he would hear a juicy bid behind me... turn around and yell 8 inches from my face .... SOLD!!!
You're right. You need an ISDA and a Bloomberg/Eikon terminal. Unfortunately, those master agreements are a whole lot tougher to get than they use to be.
Kudos to him still fighting out there in his mid-60's!! But 8 INCHES from your face?!! Eeeewwwwwww!!! Poor you. He prob. did that on purpose so other traders won't crowd around him and he can get all the juicy bid/asks all to himself, you never know LOL
ISDA probably, not a terminal... you might not even need an ISDA if trading through prime broker connections...
True, but the terms aren't as great if you use a broker. It's sort of a joke though, there is probably 5 people on this website that can allocate enough to even start a PB relationship. Have you ever dealt with GS or Wedbush PB?