Last August, Nasdaq launched the SuperSoes (small order execution system) that has moved traders away from its slower, dated SelectNet, but hasn't done much to increase Nasdaq's share of its market.
Citigroup and others, for instance, are considering moving proprietary traders to desks that handle trades for clients, although the traders would still be able to make their own bets in the markets.
"These firms are moving their traders into their asset management division because they recognize that these traders can no longer engage in prop trading but rather must trade on behalf of customers -- who can exercise real market discipline on those traders.
Goldman is considering several options, including moving the traders to another division or shutting the unit altogether, according to people briefed on the matter.
Bankers have shifted trading in German government bond futures from London's expensive floor-based exchange to Frankfurt's cheaper screen-based system, but without physically moving their traders.
On quiet days, when prices aren't moving much, traders monitor their positions, read the papers, and chat with each other, and it can seem as though an eternity passes before the closing bell sounds.
To take advantage of a rejection at CKR's 10-month moving average, traders should focus on the security's September 12.50 put.
Like the Nasdaq's market makers, the Big Board's specialists do not have enough capital to oppose major market moves, traders said.
One challenge is formulating the law so it does not prompt traders to move outside taxed jurisdictions.
Goldman Sachs, for instance, moves senior traders to risk positions, making clear that such moves are a step towards the top.
The firm scrambled on Tuesday and Wednesday to move its traders to temporary quarters in Manhattan and at the firm's offices in buildings near the Jersey City waterfront.
