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Dave:
There is what I call a "knowledge gap" as far as electronic trading and all
the various systems and platforms go. I suffer from it, and everyone I know
suffers from it in some form.
For example, I friend of mine who runs another online operation was
explaining an error that occurred. He was asking me whose error it was. A
broker called his 24 desk with a spread order for eAccess on the NYMEX. The
order was to buy heating oil 70 over the unleaded gas. A regular open
outcry futures order would have this as a buy on the left side of the order
with 70 point premium to that same side. However, on eAccess, the premium
always goes on the side of the order that is more refined. Gas is more
refined that heating oil, so the premium should have been -70 to the gas
side. Since the order was placed with a plus 70 premium to the buy side,
and filled immediately, it was an error. The question was who is
responsible, the broker placing the order, or the clerk taking the order.
The clerk took the order just like the broker gave it to him. Should the
broker be responsible for order entry into a system that he has never used?
You tell me.
My own response to this knowledge gap has been to write the daily
newsletter, which has now been named the John Lothian Newsletter, because it
needed a name and I needed a name for the name tags I wear when I am
representing it. That newsletter, which started with a few Omega List and
other groups contacts and friends has now reached 1100+ email addresses,
which includes a few listservs itself. By some estimates, not mine, the
newsletter reaches 20,000 people every day as it is forwarded around with my
blessings in some form or another.
There is a great thirst for information on a personal and professional
level, about the changes that are occurring in the futures and securities
industries. The popularity of the newsletter among other industry
professionals speaks to the value of it for its informational content,
rather than its promotional aspects. I just want to make the information
entertaining and interesting, so that it has a better chance of being
understood and remembered. Combining the information and a little bit of
personality, OK a lot, may be the recipe for that to occur.
As for PATS Systems products, I was the person who brought PATS to The Price
Group. Man took over the deal from us, but we use the product. I was the
first non-employee to have access to the PATS SARA at Man, the back end risk
management and administration interface. So I am very familiar with the
product and happy with its performance.
That said, there is no perfect system. I lost a customer on PATS because
they were having connectivity problems, which were worsened by the UUNET
problems a couple of weeks ago. On the other hand I have lots of happy
clients, who know how to use it and overcome the occasional issue that could
be their computer, ISP, the Internet, Man's PATS, Man's ISP, the exchange's
computers, or any and all of the above.
What I learned from the Omega List and others is that there has to be
intelligent, responsive, and experienced help at the other end of the phone
when a customer calls with a problem. That is true regardless of the system
being used. That is what we strive for in my operation. And many times
that type of service is what builds loyalty with the clients. The clearing
firm may not really matter, as much as knowing that there is someone capable
to help you when you are having problems.
The name of the clearing firm may change, the exchange we trade on may be
new, or the trading platform we trade on in the future may have a different
name. The challenge will remain, there will always be a knowledge gap.
Those to be wary of are the ones who don't know they suffer from knowledge
gap.
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it! John J.
Lothian is the President of the Electronic Trading Division of The Price
Futures Group, Inc.
-----Original Message-----
From: Dave Nadeau [mailto:dave.nadeau@xxxxxxxxxxxx]
Sent: Saturday, October 12, 2002 5:46 PM
To: MailList Omega
Subject: Re[2]: Man Financial
Hi John,
JJL> That is simple to fix and part of the set up process. Just ask your
broker
JJL> to have the "flatten at end of day" box unchecked. Then make sure your
JJL> positions are correct the next day.
This is one gem of a piece of information! I struggled
with an <unnamed> Pats System IB for a long time on this
very issue. Finally, I gave up on J Trader because it was
such a disaster for holding anything overnight. I'd even
get locked out sometimes because the system thought I was
way down in losses even though I was in a very profitable
trade...all because it wasn't counting my initial
position.
You are restoring my faith in a product that I really
liked in every other way!
--
Dave Nadeau
Fort Collins, CO
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