Electronic Copper on 10/22/07

General discussions about futures.
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LeapFrog
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Electronic Copper on 10/22/07

Post by LeapFrog » Tue Oct 23, 2007 8:08 am

(My first post did not take, so I'll try again briefly.)

Yesterday, at 1:44 PM after the pit closed, the e-copper market was manipulated - either intentionally or not. See graph attached. That is not an errant tick, those are real prices all the way up and back - a few people got really hurt.

Maybe an example the pit dogs might use to argue why they should be protected as an endangered species.

Not good business for the exchange unless they are trying to scare away traders, IMHO.

I cancel my standing e-orders when the pit closes, but one day...
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RedRock
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Post by RedRock » Tue Oct 23, 2007 2:31 pm

that's obscene. I'm not shocked NY didn't 'bust' the trade though... Bunch of cab drivers in charge there.... Wicked down thrusts in silver last week to. Though not quite so blatant. They usually attribute such moves to a "fat fingered" trader who over sized just a bit...

CBOT busted all trades in a mini Dow spike just after the close some years ago for me. Thank goodness. Wouldn't expect that in NY..

Like em or not. The pit "dogs" did provide rationality more often than not. At the upcoming FIA event in Chicago, one of the lecturers will be speaking on the ill effects of duel market trading. IE electronic side by side with the pits. And will question the viability and thought process behind the decision to trade side by side. Seems many traders are displeased with this phenomenon. It should be one or the other, ala eurex. Not both "who's on first? no, he's on second etc etc etc.

LeapFrog
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Post by LeapFrog » Tue Oct 23, 2007 3:44 pm

RedRock wrote: At the upcoming FIA event in Chicago, one of the lecturers will be speaking on the ill effects of duel market trading. IE electronic side by side with the pits. And will question the viability and thought process behind the decision to trade side by side. Seems many traders are displeased with this phenomenon. It should be one or the other, ala eurex. Not both "who's on first? no, he's on second etc etc etc.
Talk today at my broker's that the trades might/would be busted - should know tomorrow (they must be in heavy deep and meaningfull discussions about it down in the bowels of the exchange) - stay tuned.

Yes RR, saw that on the schedule. If you go (I'm not), please let us know what you think of the discussion. It is an important issue for sure.

P.S. I see you like red things RR - nice!

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