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To: TFF who wrote (8495)10/27/2000 4:59:53 PM
From: Wayners  Read Replies (1) | Respond to of 12617
 
They're also the biggest manipulation vehicle too.



To: TFF who wrote (8495)10/27/2000 5:22:36 PM
From: LPS5  Respond to of 12617
 
TFF,

You are absolutely right.

Futures (1) have no uptick rule for shorting them; (2) are electronically executable; (3) enjoy leverage that can be ratcheted up and down by the exchanges, CFMs (commodities/futures merchants), and IBs (introducing brokers); and (4) are very liquid.

In addition, (5) the contracts can be extended indefinitely ("switched"); (6) they have a number of tax advantages to direct stock investing; and, (7) the CFTC (commodities/futures equivalent of the SEC) publishes regular information about the open interest in a particular contract.

They're also regulated at several levels: not only by the CFTC, the NFA, and the exchanges, but structurally, by the presence of both hedgers (pure interest vs. actuals) and speculators.

LPS5