For Crying Out Loud: From Open Outcry to the Electronic Screen
Format: PDF / Kindle (mobi) / ePub
A follow-up to Leo Melamed on the Markets, this book covers the developments in the futures markets since 1992 and discusses their transition through the digital age. The author, a recognized founder of financial futures, details the global issues confronting the futures market. You’ll learn how financial markets have allowed investors to manage generalized risks to both reduce exposure or enhance value to capture increased profits. Additionally, you'll discover trends, technology, and products that have shaped the world of futures and options, and what the future holds.
manipulation, fraud, and tax evasion involving millions of dollars.13 Pretty heady stuff. As the press saw it, at the core of the problem was dual trading and broker groups. Sallie Gaines and Carol Jouzaitis of the Tribune ran a comprehensive report on it with the headline “Broker Rings Legal—But Can Lead to Abuse.” The article noted that the federal investigation of Chicago’s futures exchanges was “putting a spotlight on powerful groups of brokers who often control activity in the trading pits
opposing sides. To underscore its unqualified support for Globex, the EOA Newsletter carried an interview with me conducted in June of 1996 about the destiny of electronic trade. (See Appendix 3E.) In taking the bold action it did, the EOA changed the course of CME history. In my book, its members are all heroes. They took on those broker groups that would tolerate improper trading practices and ignited the simmering war between proponents of open outcry and those in favor of automation. In doing
generate sufficient liquidity to be a E-Mini 39 viable alternative to open outcry. It would represent the defining moment in the battle with the status quo. In the first week of June 1997, we received the bad news. The Dow Jones Index was officially awarded to the CBOT. We tried to soften the blow with the announcement of the mini S&P concept, but the news hit the CME like a ton of bricks. Our members regarded Dow’s decision as a death knell to the future of the Merc, and our membership
available to everyone around the globe and fostered massive capital flows in unencumbered fashion. It dramatically changed the nature of global capital markets forever. The markets of futures and options recognized this march of technology, understood its inexorable impact on commerce and trade, and willingly adapted to its demands. It is no accident that our markets thus represent one of the greatest growth arenas of the last two decades. 140 Messenger from the Futures As logic would
values” versus “Western values.” Never mind the facts. Never mind that the market always reacts to perceived realities. Never mind that the credit rating of Malaysian paper was lowered by Standard & Poor’s from stable to negative because of Malaysian reluctance to curb rapid credit growth when inflation was building in the economy. It is always easier to blame currency problems on speculators than to admit to excessive government spending or lax monetary policy. And the perfect whipping boy in