Rami: You got me! The TXO specialist has to manually
enter a driving price for his option matrix, and this
is based on the near-term TXF future, with half an
eye on TIPS. The TXF market ebbs and flows with the
aggregate bid/ask on the underlying 35, the S&P future,
bonds, gold, rumours, crowd psychology, etc. These
swings in sentiment can and do provide good opportunities
for nimble traders.
It is exactly this liquidity and flux which is most
threatened by a screen-based system, where incoming
orders can *only* trade against the book, with no
possibility of improvement, in my opinion. This is
just one of the reasons I am staunchly opposed to
the exchange's 'blueprint', which calls for an end of
a 'central auction' market.
Porter |
