Contested trades: hot potato or hot air? (includes defining the status of the issues)(Trade Trends)

Futures (Cedar Falls, Iowa) | January 15, 1991| | Copyright

Contested trades: Hot potato or hot air?

Program trading, index arbitrage, dual trading . . . these trading practices have unleashed a good deal of critical scrutiny and triggered a regulatory tug-of-war since the October 1987 stock market crash.

Nevertheless, futures markets remain staunch in their defense of these practices, developing "circuit breakers" and other rules to smooth over the rough edges. While some observers may wonder if recent changes are enough, the U.S. futures industry -- with international competition around the corner--asks instead, are ...

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