The Final Frontier - Online Remote Trading

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Strategies & Market Trends The Final Frontier - Online Remote Trading

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To: Eric P who wrote (8747)	2/14/2001 9:11:28 PM
From: TFF	of 12617

I believe that was the beginning of the end of E*tailers.

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To: TFF who started this subject	2/14/2001 11:15:18 PM
From: TFF	of 12617

Enron Online enrononline.com

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To: TFF who wrote (8749)	2/15/2001 12:03:12 AM
From: Jon Tara	of 12617

Oh, cool We can trade "weather" now. Heck, that beats Presidential Elections all to heck. More seriously, is this practical for an individual trader? What kind of capital does it take to trade these contracts? (And is it even possible?) One of the really annoying things about the California energy situation is that they set-up a rigged market. You had to be either a producer or a consumer to trade electrnicity at CAL-PX. There was no opportunity for speculators to enter the market. I suppose they must have somehow thought that by limiting participation to producers and consumers that they were somehow "protecting" the public from manipulation. I think that, in fact, this structure INVITED manipulation, and had speculators been allowed into the market, we would never have had the disasterous results that ensued. BTW, just read an article (Economist? Not sure where I saw it) claiming that California actually has MORE reserve generating capacity than most other states. Yes, we haven't been building new plants, but we had so much excess capacity that we didn't need to. The article said that it's all been basically a put-up, with plants being taken off-line to create an artificial shortage.

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To: Jon Tara who wrote (8750)	2/15/2001 12:18:54 AM
From: LPS5	of 12617

I met with someone a few months back who explained to me that, for the retail end of the market, weather contracts could be used to hedge against the risk of financial loss to holders of an outdoor wedding - for example - in the event of rain (which might lead to losing deposits, damage to rented tuxes, etc). Or, for those in those "big square states" out west, losses due to tornados and such could be hedged against...to some extent. I wonder what the insurance/reinsurance industries will do to address the potent threat that such contracts present (if indeed they prove threatening). Possibly issue their own contracts or address the new market with OTC weather derivatives along the lines of swaps, etc.? LPS5

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To: Jon Tara who wrote (8750)	2/15/2001 8:44:29 AM
From: TFF	of 12617

Futures have amazingly low performance bond rates. But more importantly the quick pace of change is making futures far more attract than stocks for short term trading. Some things happening include: Demutualization of futures exchanges creation of electronic markets (globex, a/c/e, etc) Proliferation of direct access platforms(ISVs') Simplified execution. High volume/highly volatile contracts. rapidly falling commission rates creation of many new contracts such as individual stocks, stock sectors, indices, etc. Should make for interesting times ahead.

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To: TFF who wrote (8752)	2/15/2001 12:58:38 PM
From: Jon Tara	of 12617

What is a low performance bond rate? Is this something you get from one of those guys with all-night offices across from the court house? :)

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To: Jon Tara who wrote (8753)	2/15/2001 1:23:26 PM
From: TFF	of 12617

LOL . No performance bond rates are the semi-equivalent to margin on stocks: Here are the requirements for the CME for example: CME Performance Bond Rates cme.com

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To: LPS5 who wrote (8751)	2/15/2001 7:41:58 PM
From: OX	of 12617

I'm aware of the xDD contracts that have been trading at the CME for awhile (what is it a year or 2 now--time flies), but do you know where the "rain" contracts are trading? I looked over the enron site and it alludes to them, but only mentions the xDD contracts in any detail. perhaps enron have their own products (??) fascinating stuff TIA

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To: OX who wrote (8755)	2/15/2001 7:50:58 PM
From: LPS5	of 12617

OX, Sorry, no idea. They might be pending or even conceptual at this point, but a derivatives salesperson explaining the institutional applications to me recently gave the wedding example when I asked, out of curiosity, if there were retail applications as well. I'll post any other qualitative information that I come across - LPS5

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To: LPS5 who wrote (8756)	2/15/2001 9:45:40 PM
From: OX	of 12617

tx for your reply <e>

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