CMC markets -legal action

This is a discussion on CMC markets -legal action within the The Foyer forums, part of the Off the Grid category; grantx, Good stuff mate, needs bringing to the attention of others, including people that complain about the companies that use ...

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Old May 30, 2008, 11:04am   #89
 
Lee Shepherd's Avatar
Joined Feb 2008
grantx,

Good stuff mate, needs bringing to the attention of others, including people that complain about the companies that use this, including the ones who defend them without knowledge of this.

I knew this existed but couldn't find any info on it.

Now I have it.

Thanks.
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Old May 30, 2008, 11:10am   #90
Joined May 2008
onemillion started this thread My problem is not whether CMC giving MP or not. They dont give the market price but they have to keep it close to mp.. i am not going to say it is same for after hours price. After hours they do play with the price, sametime way off instrument's future price for a short time then they move it back.

What is the reason they move after hours prices more than instrumen's future price? i dont know but i am guessing, doen anyone know that?

Think, if you can play with the price any way you want to, even few ticks, you can make other people lose and make easy killing.

Second, why does CMC delay executing the trades longer than it should be. When they take your order, they delay and see how the market moves in next 10-30 seconds. i seen market crash in 20-30 seconds. As long as price moves they make money, becouse you dont get if the price moves in your favour but you will be offered new price if it moves against you. What happens the difference, it goes to CMC. Who is taking the risk and with who#s money, YOU. If you ask CMC why are they delaying your trades, you wont get an answer.

This is illigal under FSA rules and relavent Consumer Acts. CMC is not free to do what ever they like. Can i prove that? If i can acces their books and account details. That's why CMC have no balls to go to Court. They are manipulating market prices and by controling the trading system they are trying to gain from their client's illigaly and unfairly.


Even bookies cant change the winning horse or price after the race. Wouldnt that be nice, change the horse and price after the race, we can all be millioners! What CMC is doing, is exactly that, changing the price to make easy money from their clients.
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Old May 30, 2008, 11:27am   #91
 
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Quote:
Originally Posted by A Dashing Blade View Post
Rubbish, clearly you havn't got a clue about market-making.
I do have more than a clue about market making. Perhaps, you'd care to enlighten us before dismissing the statement which I made.

If you're trading an index, for example, the price is the price. There are no market makers!!!! The relevant exchange transmits the current price of those indices tick by tick. Equities, Forex and Commodity markets, primarily, do have market makers. I repeat the statement which I made previously. Any reputable SB should position their spread either side of the current price. Live prices are transmitted directly from the relevant exchanges and are there for all to see.
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Old May 30, 2008, 11:30am   #92
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the spread better is the market maker......they can price where they like. if you're daft enough to deal on it then that's your choice. any sensible punter has a few accounts so can arb if there is an opportunity..
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Old May 30, 2008, 11:31am   #93
 
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Quote:
Originally Posted by alan5616 View Post
I do have more than a clue about market making. Perhaps, you'd care to enlighten us before dismissing the statement which I made.

If you're trading an index, for example, the price is the price. There are no market makers!!!! The relevant exchange transmits the current price of those indices tick by tick. Equities, Forex and Commodity markets, primarily, do have market makers. I repeat the statement which I made previously. Any reputable SB should position their spread either side of the current price. Live prices are transmitted directly from the relevant exchanges and are there for all to see.
Why should their spread have the same midpoint as the market price? There isn't actually any good reason for that and it will lead to huge distortions on figures too. Even worse if you take the last trade price.
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Old May 30, 2008, 11:34am   #94
Joined Feb 2008
if they work like options market makers they will have strike risk too so they can massage their prices around where they have risk...
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Old May 30, 2008, 11:50am   #95
Joined May 2008
onemillion started this thread
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Originally Posted by gooseman View Post
the spread better is the market maker......they can price where they like. if you're daft enough to deal on it then that's your choice. any sensible punter has a few accounts so can arb if there is an opportunity..
just read what i said before making stupid coments. And read some of rules and regulations about SB or CFD companies. They certainly have the right if they are market maker to give any price but they have to offer that price to all other market participents. If they do that in open market, they will be wiped out by other players in very short time.

You certainly have no idea how market making works and under what regulations.

By the ftse100 is offered under 6000 at the moment, 100 points below the market. Go and see if you can do few trades. Dream on.
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Old May 30, 2008, 11:52am   #96
 
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Quote:
Originally Posted by alan5616 View Post
I do have more than a clue about market making. Perhaps, you'd care to enlighten us before dismissing the statement which I made.

If you're trading an index, for example, the price is the price. There are no market makers!!!! The relevant exchange transmits the current price of those indices tick by tick. Equities, Forex and Commodity markets, primarily, do have market makers. I repeat the statement which I made previously. Any reputable SB should position their spread either side of the current price. Live prices are transmitted directly from the relevant exchanges and are there for all to see.
Apols for being too "forthright" alan . . .

Lets take an index as an example

say it's value is 1000

say I, as a market maker, make a price 995-1005

say I get hit and lifted but in unequal amounts

eg 5 units gets sold to me at 995, 100 units get bought from me at 1005

I'll then adjust my price to reflect the fact that I'd rather buy than sell compared to other MM's (MM's attempt to keep a flat book and simply cream in the bid/ask spread)so my next price will be something like 998-1008 even tho' th market hasn't moved.

Enlightened?

(pretty sure I've got all that the right way round)

Oh yeah, forgot the bit about the instrument MM's would use to hedge their position, in the case of an index, it'll be the future rather than the actual index value itself, but we'll leave that for another time
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