I didn't want to derail the other thread and thought this topic might
deserve its own.
Is anyone else getting fed up with the CME in regards to futures trading.
A number of concerns that I have had lately.
1. MF Global - The CME group allowed them to transfer funds out of
customers accounts and skirt the rules, and yet no one is held
accountable in either the CME or MF global. As parsley has pointed out
and kept us up to date on this, something smells with this whole mess.
2. Yesterday they announced that as of Monday floor traders would not be
able to use their seats as margin money. The price went down 10-20 cents
depending on the commodity. I have no idea whether this is good or bad
but shouldn't this be grandfathered in so as contracts expire it is added
on the new ones, you shouldn't be able to change the rules of the game
halfway through a contract.
3. All day trading. Trading now will be effectively 23 hours a day if I
understood correctly. It is stressful enough doing some small trades, but
when something happens overnight and the price plummets how are the
smaller traders supposed to react when they are sleeping or living life.
I would of thought that less trading hours would be appropriate so all
the players can analyze and digest the information at the same time
allowing all market participants to react accordingly. They way it is
set up now the big players have a enormous market advantage by being able
to analyze the news 24 hours a day and trade accordingly, giving them a
huge upper hand, with the expanded trading hours it is only bound to get
worse. I would think for good price discovery it would be beneficial for
everyone if we where all at the same table at the same time and all
playing with the same cards.
Maybe I am way off base on the trading hours.
Just some thoughts on trading and how it is getting less and less about
price discovery and more about volume, and about how protecting your
own(MF Global) is more important than protecting the small trader.
deserve its own.
Is anyone else getting fed up with the CME in regards to futures trading.
A number of concerns that I have had lately.
1. MF Global - The CME group allowed them to transfer funds out of
customers accounts and skirt the rules, and yet no one is held
accountable in either the CME or MF global. As parsley has pointed out
and kept us up to date on this, something smells with this whole mess.
2. Yesterday they announced that as of Monday floor traders would not be
able to use their seats as margin money. The price went down 10-20 cents
depending on the commodity. I have no idea whether this is good or bad
but shouldn't this be grandfathered in so as contracts expire it is added
on the new ones, you shouldn't be able to change the rules of the game
halfway through a contract.
3. All day trading. Trading now will be effectively 23 hours a day if I
understood correctly. It is stressful enough doing some small trades, but
when something happens overnight and the price plummets how are the
smaller traders supposed to react when they are sleeping or living life.
I would of thought that less trading hours would be appropriate so all
the players can analyze and digest the information at the same time
allowing all market participants to react accordingly. They way it is
set up now the big players have a enormous market advantage by being able
to analyze the news 24 hours a day and trade accordingly, giving them a
huge upper hand, with the expanded trading hours it is only bound to get
worse. I would think for good price discovery it would be beneficial for
everyone if we where all at the same table at the same time and all
playing with the same cards.
Maybe I am way off base on the trading hours.
Just some thoughts on trading and how it is getting less and less about
price discovery and more about volume, and about how protecting your
own(MF Global) is more important than protecting the small trader.