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Stephan: Interestingly, one of the main differences between Europe and the U.S. is that there are more computerized exchanges in Europe. The biggest European exchange, Eurex (formerly DTB and Soffex) is electronic; LIFFE is getting its electronic trading platform off the ground in the first quarter of 1999; and most of the smaller European futures exchanges are electronic. I believe that one reason our customers are currently increasing their trading exposure in Europe is the transparency of electronic futures markets and the inherent fairness of such a system. Once an electronically traded market maintains a daily volume of trades so that it can be called liquid, the customer seems to prefer it over the open-outcry exchanges. I believe that the main reason these customers prefer to trade electronically is the instant fill they get out of an electronic exchange. This brings us to the concept of electronically accessing an exchange, bypassing the human interface and being filled on a market order within a second. This is only possible on an electronic exchange and really should be the reason why you want to trade electronically. |
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Comment: If Stephan is correct, trading Chicago style may be a legacy of the 1900s. I hope not. However, it is up to the leadership of the exchanges to answer that question. |
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Stephan Benger can be reached at (312) 407-6000. His Web site is www.pmb.com. |
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