Say what, Vectra?
> No more will you see a group of traders manipulating the
> market to trigger these orders, since they will not be seeing them. > Instead the auction market will determine if they are triggered.
I am specialist in, and run the book for, three of the most active option classes in Toronto. On average, I see an on-stop order about once every six months. If you have specific information regarding what you term 'market manipulation' I would be happy to investigate it for you, or provide you with the phone number for Market Surveillance at the TSE. Absent any specific information, I would appreciate that you not use derogatory langauge like 'manipulation'. We are the most srutinised people you can imagine...if you have a case, let's hear it.
Further, your use of the word 'auction' in describing the proposed electronic trading system could not be further from reality. The exchange is proposing an 'order-driven' system in its most basic form. There will be *no* auction or price discovery in the new system. An incoming market order to buy twenty contracts can buy ten at the posted offer, say $1.00, and then the system will automatically search through the book for the remaining ten, and if the next offer is $10.00, so be it, that is where the second ten will trade, without the possibility of anyone intervening to prevent it. This is right and fair? Imagine the effect on any on-stop orders that will have.
Vectra, I notice you have chosen not to provide an e-mail address. There are many good reasons for desiring privacy, but perhaps you could provide us on this thread with some background on your experience/connection/contribution to options trading in Toronto? Perhaps that might lend some credibility to any comments or criticisms you might have on our market.
Happy trading.
Porter |
