February 6, 2008
Securities Exchange Commission
Does the ISE allow customers to view their market depth books if customers are bid or not, or allow customers to view their spread orders on their system? The answer is NO, how is that fair competition, how do public customers have more information than ISE market participants. Is it fair competition that market participants are allowed better margining during the day and overnight. NO, it is clear that the ISE lawyers need to study the law and margin rules to understand the reasons why there are differences between public and private. This has to do with margining interday and overnight. Public customers cannot short options because of margin rules, how is that fair? If this leglislation is passed then the ball is definitely in the hands of the exchanges as if it was not already. It is almost comical how many different types of leglislation have been introduced to the SEC over the past three years to prohibit and discriminate against public customers. Cancel Fees- 30 seconds, how many contracts you enter a charge on the number of contracts entered, increasing the cancel rate from $1.00 to $1.25 then to $1.50, the list goes on and on. I am very surprised a Qui-Tam lawsuit has not been filed against the ISE and why the DOJ has not subpoened the ISE into the violations of Sherman Act and Clayton Act. Qui-Tam in relation to cartels via the former CFTC chairman, please read his articles. How about this why not have the CFTC and SEC merge so we can end all of this. Everyone would then have an equal opportunity via getting filled on their orders and the same interday and overnight margins, then we could all trade futures versus trading stocks, therefore getting better income tax rates. Allow the cross-margining of futures with index products. Allow other exchanges like the Chicago Merc to enter the option industry, so we can eventually end the ISE exchange dominance, what has happened to the Nasdaq exchange??