Simulation

How’s this for antiquity, this one goes back to before the floor opened in ’76. Before the floor opened there was simulated trading for three weeks. It might have been four weeks. The opening of the floor was postponed at least once. Simulated trading was bizarre. I was a member of the Book Staff and we trained doing these crazy drills where they’d fill “the shoe” with orders. Prioritize. What’s close? File them away. Really comic to think back. There were hundreds of hand written orders. We practiced these busy scenarios that didn’t happen in those early years.

The market makers stood around and traded. It was all fake, so the trades didn’t mean anything. The “trades” were put on the tape to test that system. The original market makers were some crew. There were a few CBOE veterans, but many were clueless. They didn’t know what they’d gotten themselves into.

One day a Market Maker, I think his last name was Tuck, came up to the book. He asked the OBO, Kathy Conrad, if it was important to be able to read the screens. She thought he was putting him on at first. “No, really, I mean, is it important to read the screens?” He was nearsighted and didn’t want to wear glasses on the floor.

Kathy pulled him to the side. I couldn’t hear what she said, but she talked him into leaving the business. It might have been the best advice this guy ever got, and I doubt anyone else would have told him. For some reason I can’t remember, there was a spike in seat prices. I heard the guy made 10 grand on the seat.