Author: Pabst
A couple of things about that Soros order. A friend of mine who was a local that day in the Spooz told me the filling broker (it was a Shearson-Lehman house broker) tipped the order to everyone around him. (I think it was 5000 plus cars). He told locals “don’t bid me, I’ve got a chunk to go” etc.
Not only did he fill the order down to the 180’s (about 30pts below fair value) but he oversold the order and by CME rules he had to take the worst few hundred contracts for himself as part of the error. The error cost Shearson several million. Borsellino and many arbs bought about 2000 on the lows and the market rallied about 20 points in increments of 2-5 points at a crack. A relative of mine was long 200 coming in and bought 200 at the same levels as Lewis and still made money on the day after being down around 6 million early.
Author: skalper
Man u guys brought back some memories. I just stumbled on this thread re: ‘87 crash. I was in the spooz then. I remember going home that Friday (Oct 16) with a bad feeling. Sunday night the big news was Tokyo…down big Monday morning was unreal. U had to be there to believe it. The Shearson desk got a sell order from Soros to sell 2500 futures (old spooz…as in $500 a handle) before the opening bell. U should have seen their filling broker…..offered it all the way down while showing his size. The locals who didn’t have positions just let it fall like a rock. Not a good day to try and pick a bottom. Best story of the day was about a filling broker who went the wrong way on a chunky order, and made a million plus.
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