David Stein is an independent trader. He helped stage a walkout of CME Group options on Eurodollar futures on Apr. 13, 2012. Stein and other traders protested a large, privately negotiated trade from the day prior, which according to Stein, was done by phone. He said that allowing these block trades was "anti-competitive" and "un-American".
The trade made on Apr. 12, 2012 involved tens of thousands of puts on June 2014 Eurodollar futures. Stein and other protesters were demanding that the CME require parties in block trades to first make the information public by doing an "all-or-none" offer in the pit. Dow Jones reported that approximately 95 percent of independent floor traders walked out on Apr. 13, 2012.
Bloomberg reported that the walkout could indicate current strains on pit traders, as they try to earn a living in a changing market. Stein and other traders met with CME Group executives for 90 minutes, without making much progress. Executives held their position that block trades were not only safe, but an important source of business for the exchange.
JLN News Feed
Hedge funds braced for second stock market plunge; Airlines Lose Billions of Dollars in the Oil-Market Casino
CME Group Chairman and Chief Executive Officer and Chief Financial Officer to Present at Piper Sandler Global Exchange & FinTech Virtual Conference
[JPXPilot Test of DLT Information Sharing Platform in the Field of Securities Post-Trade - Selection of Use Cases for Verification -]
We visit more than 100 websites daily for financial news (Would YOU do that?). Read the John Lothian Newsletter.