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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: Cash who wrote (8652)1/19/2001 11:16:28 PM
From: LPS5  Read Replies (1) of 12617
 
Here's an excerpt from a message on this topic I posted last year - on this very thread, in fact:

Here are some numbers for you: I have, sitting right here on my desk, a report done by SRI Consulting stating that nickel increments would cause something like 3.5% more trades and about the same increase in quotes being transmitted. Straight to penny increments, and the increase in share volume would be 9%, with 81% more trades done and 231% more quotes transmitted. In addition, that the equity volume would (if in nickel increments) juice equity options markets by 52% and index options by 50% [ more quotes transmitted].

To penny increments, and the equity options market quotation volume would increase by 305%, with index options bumped up by 160%. Remembering as we should that large firms hedge equity options with equities and vice versa, I'm sure that critical brokerage technology is not ready for that.


LPS5
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