Differences between open outcry and electronic contracts?

[Reaver 10]

I was wondering,

 

say for instance, you were looking at 30 yr Tbond electronic vs 30yr Tbond open outcry, as far as getting wuotes, price data, etc, are they the same? is it simply the method of execution that is different?

 

I was asking because for instance, esignal provides the ZB (electronic 30 yr Tbond), but not anything for the Open Outcry Tbond.

 

Just wondering mainly if I'd be okay using this data for monitoring or not.

 

Thanks!

[TinGull 10]

I've got no clue how the bond market works, but when you're looking at quotes for the SPX, you're only seeing pit quotes. Your electronic orders get routed to a market maker most with most brokerage houses and then he works his magic on the floor.

[Reaver 10]

Okay I was just wondering how it worked, since I see quotes and data available for either one, and was wondering if the information was different...

 

ie using open outcry quotes for electronic trading, etc...

 

Thanks Tin

[wsam29 10]

open outcry is pit traded

 

When ever the prices diverge beween pit and electronic, arbitrage traders will take care of that, they buy on one platform and sell it on the other. Its a game we cannot play because you need to be in the pit and have access to the electronic traded contract as well.

 

Since they rarely if ever stay diverged, just watch the contract you are trading withou getting too complicated.

 

Its like what I did in my earlier days, I would watch the SP (pit traded) and trade the ES. Did not work to well I would say. (this was when the ES was a fairly new product)

[Guest cooter]

 

I was asking because for instance, esignal provides the ZB (electronic 30 yr Tbond), but not anything for the Open Outcry Tbond.

 

 

I could swear that e-Signal has QUS for composite Tbond, US for floor and ZB for electronic trading.

 

Best use for pit trading the 30year is as a safety hedge when the electronic ZB at e-CBOT goes down - as it does from time to time.