Danny Taggart's Blogarama

A more-or-less daily dose of news, politics, techmology, and any random thoughts that pass through my head.

Sunday, January 30, 2005

Is TradeSports trading on its own exchange?

I'm looking at the Iraq elections futures on TradeSports and notice that there have been a number of trades at 99.9. This is very strange to me because the trading fees are $0.04 per block per trade/expiry. So that means that any buy order at 99.2 or above would necessarily incur a loss because of trading fees. It wouldn't make sense for a trader to engage in this kind of behavior. The only explanations I can think of are:
1. TradeSports waives the fees for certain high-volume traders.
2. TradeSports itself engages in trading on its own exchange, something which they specifically deny in their FAQ.