This is Huge! Target release date Feb 2, 2003 CME will offer an order feature that will allow a trader to conceal any or all of their order quanity. Translation- The game in the minis has changed for us small guys. The depth of the market book may contain large orders not shown!
I attended a meeting a the exchange today. I don't think its been released publicly yet, but it should be on the CME web site by the end of the week. Look for eTUG meeting minutes Q3-2002.
the locals at the CME who try to arb the e mini and the big one won't they object to this ? maybe the big order flow that uses the e mini has more pull with the CME and insisted on the ability to hide size?
Large locals ARE most of the size in the minis. But, yes, it puts the smaller arbs at a disadvantage. I think the implications for the pit traders are even larger. Goodbye pit.
Think about it....Goldman has 500 big contracts to do. Where do you think they will choose to do them? The pit? I dont think so.
Sorry, but I don't follow you. Can't GSCO have reps in the pit who are equally capable of disguising their size?
What he is saying is if they have 500 big S&P to sell, why should they take it to the pit. They go to ES - put 2500 in to sell at a price but you only see say 200. Someone buys 200, still 200 there, buy another 200, still 200 there, buy another 200, still another 200 there. No one can see their true size. Small daytraders would lose an edge. Don't ever forget the golden rule. The guys with the gold make the rules.
Learn to get around it. In an age of high-powered computers and super-fast connections, you could easily program something that could detect "bid walls" or "ask walls."
With all the noise inherent in gauging the levels of bid and ask in the eminis, it doesn't change the picture too much... most of the people I know use technicals and volume to trade the eminis and do NOT use market depth... so it won't change the game for too many... of course if the CME decided to hide realised volume I would personally go over to em and rip their throats out... but the abovementioned proposed changes will not materially change the game for most of us... Whatever the bastards of regulation throw at us in the stocks, options and futures markets, we must simply adapt our strategy to neutralise their attempts to eliminate our activity... we are here to stay, and no regulatory son of a bitch can stop us from swiping big boys' money off the table... fuck all regulators, they ain't there to help us, they are there to kill us... we will prevail, cos we are more adaptable, more cunning and more intelligent than they could ever be... my daily bread is made by taking bite sized chunks out of the big boys' lunch box... any attempt to stop me from doing this will simply make me even smarter and even more efficient in achieving my stated objective... ... so repeat after me: "FUCK ALL REGULATORS"...