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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Kayaker who wrote (1374)	4/28/1999 8:36:00 PM
From: Dave.S	Read Replies (1) \| Respond to of 1598

Bob: Like Porter, I'm also a Pro on the Options Floor in Toronto. The Market Makers on the Toronto Floor are all different when it comes to size they are willing to trade. Some will only fill the minimum guaranteed fill (usually 10 options) while others like to do business and will trade hundreds at a time. This size is also a function of the liquidity of the stock and its volatility. For example getting a fill for more than 10 JDS options is difficult because the spread of the stock and its volatility is large. The MM's cannot hedge very easily. With BCE the stock is quite liquid so the MM's can hedge more easily. I suspect your problem with BLD is due to its large spread and relatively illiquid market in Toronto. Dave

To: Kayaker who wrote (1374)	4/30/1999 7:40:00 AM
From: Porter Davis	Read Replies (2) \| Respond to of 1598

Don't know how I ever used to find time to post so much... I haven't read the two articles cited by Bob, but I would guess they both refer to 'anomolous' trades that can and do occur on NASDAQ or ECNs. (I have seen situations on NASDAQ that made my jaw drop over the "inequity".) This contrasts sharply with the derivative side of the TSE, where we conduct an auction market under the supervision of a specialist. We have price discovery and trade disclosure, and someone to turn to who is responsible for the markets and is answerable directly for his actions. None of this is the case with NASDAQ or ECNs. We may have liquidity issues (hey, I saw Ballard rocket $25 in twenty minutes, so I give it a lot of respect), but there are no systemic inequities in our marketplace. We are subject to constant and detailed surveillance. Any investor who believes he/she was not treated fairly can call market integrity at the TSE (or have his/her broker do it) and receive a detailed time/market report. Hope this helps. Happy trading. Porter (I guess I should add, for the benefit of people new to this board, that I am a specialist on the TSE calling markets in BCE, N, BLD, ABX, and ABX Leaps options. I do not work for the TSE.)