Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (21530)	7/13/1998 7:11:00 AM
From: robnhood	Respond to of 94695

Robert,, << turn TSE into more of a NASDAQ style market which IMO is not to the benefit of the outside trader. Is this the direction that the TSE is heading?>> I think that perhaps when the big six banks got in the game a few years back that this may have been the hidden agenda, however I'm not so sure anymore. Perhaps it has to do with how well they have done in since getting into the business. <<computer matching of orders creates the opening price of the trading instrument. >> If a lack of orders to one side or the other is going to skew the price too much from the previous close , then I will enter an order which will bring it into line. The tse also has a built in function which automatically freezes trading if the opening or next trade is going to take place to far away from the previous trade. <<Do you see the possibility of a completely automated trading system with no MMs?>> They already have that with instinet and others, however I don't see it with an exchange... <<So what MM outfit would want to entrust to a machine their capital in the markets with the possibility of losing significant amounts of money which can happen trading counter to the market? >> Unlike specialists , most of the pros in Toronto do not own a lot of the company they work for/with.. The firm where I am employed is bank owned and basically operates as a seperate entity. There are no bank people and we are not in the same building as them. I think that is the same for all the brokers. Anyway , the reason our firm and the rest have MM's is for the profit not for making markets. Making Markets is where the TSE gets involved much like a bureaucracy, with the ability to take allocations away and levy fines for rule infractions. <<Also, I understand with illiquid stocks an automated system of trading will actually reduce liquidity compared to its non-automated counterpart. Is this true? >> Yes , there is a growing list of stocks at our exchange with no MM and sometimes have horrendous spreads or no market at all. These stocks generally have a very low float , at least here. One of my stocks once was AXP, I tried for months to get it to trade here to no avail. Once I went on holidays and when I got back my bid was $7 higher then where it was trading in NY and still no one had noticed..<g> <<On my next trip back East, I am planning on visiting Toronto and the TSE. I will be asking allot of questions when I get there. So some generous individual over there may end up regretting my visit. ;)>> Let me know, and I will arrange to take you up to the office and you can see first hand...BTW, it is not nearly as exciting as when we had a floor. The good ol days. <gg> russell