Funk,
No apology needed and I won't go away mad. Like I said and Irby stated, I am not trying to make the point that my firm (since I think we are one of the few that maintain this approach) is suited for everyone. I have no dream of trying to win anyone over here, to come do business with our firm, I am simply pointing out that I firmly believe that in most circumstances (with a few exceptions which we could hash out) our firm gets better executions, faster, albeit at slightly more expensive commissions, netting out usually better,than online firms.
Even though it is a very difficult task due to the dynamic nature of the market, I tried to explain in detail how, IF i were to be dealing with some very active, fast acting SOES trader, how quickly an order could be worked. I gave a rough estimate that I could have an execution reported to the client, while my headset was to my ear. I estimate that on many instances an execution and report would be given almost instantly, maybe 2 or 3 seconds if the stock was there.
I asked it and noone answered it. How long, when you enter your soes trade, does it take to get a report with one of the electronic firms? From my experiences, it would usually take 5, 8, 10 seconds. And if you had to cancel the order, get an out, and reenter another way or at a different price, the lag added up.
As far as classifying us as the "old way", I think you miss the point. We are one of the only firms out there that maintain our approach and service a wide range of clientelle. Right now, we will not be able to satisfy the investors that wants to bring up an order entry screen, enter a soes trade and see it ten seconds later on their screen. Look, I am a computer junky, love the things. Hell, I would rather deal with a machine and a screen rather than deal with people on the phone, but I stand by my conviction that a firm such as ours, for the most part, can still get far better executions using a broader range of trading system, than most online firms.
Look, I am willing to go point for point on the issue to hash it out, but I can't argue with your comments that "Nobody want's to talk to anybody on the phone to make trades. If the computer craps out; then yes I will be ever so thankful to call, your buddy, Ross and get him to enter or exit a position for me. " Actually, I could and did.
If we just want to let this argument die, fine. I was looking foward to bit of debate given more specifics about the systems, execution methods, times, etc.
RE:Irby's question (which I think furthers the dialogue) - everyone's different. For those clients who are doing active trading, if I am given a marketable SOES order, figure it this way:
maybe 3 seconds to get us on the phone (customer dials and we answer)
Maybe another 2 to SOES the trade and confirm the whole piece gotexecuted.
Lets call it 5 or 6...thats your standard one-onethousand, two onthousand.
So again, I ask (not confrontationally but because I am curious) have the systems gotten better so that traders online can get SOES trades back in less than 5 seconds. If so, then in this area, pure SOES trading,yes, we are inferior. But IRBY has also acknowledged the move from pure soes and as well, we all know that SOES is cued up to be dismantled this year.
Regards,
Steve@yamner.com |
