End of forex brokers CME & Reuters join forces

It is all about the size you trade, for example, Aaron wants a minimum size of 500k per trade for a fee of $25 per mio. This is pretty much standard for the industry, CX is CX. And getting it lower than $50 is possible you just have to be able to trade the size and then negotiate. If you are at $25-$30 with no size requirements, that is pretty good.


The Ever Venomous VIPER
 
Anyway, with 500K as min amt required by Currenex brokers, with a charge of $25 per side, this amounts to $50 per round turn per 500K, way cheaper than the reatil brokers for EUR/USD at 3pip spread of 5lotsx3pips x $10=150 per round turn.
Anyone disagree with me?

Any complaints with Currenex with ManFinancial USA/SG/CA?
Best Currenex provider in USA?
 
Quote from Businessman:

Will this also mean an end to the Currency Futures currently trading on Globex eg EURU6?
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500K in EUR at IB = 4 contracts = $12 per side. fwiw
 
PIPe PIPer and Viper, I agree that $25 per million per side is great, but PFG wanted to charge us $50 per million per side ($100 round trip per million - 1 pip). This makes no sense, so I wonder how they're getting business (unless, of course, the guys that I spoke to were trying to pull a fast one on me).
 
Any thoughts on why CME/Reuters time table is so bloody slow? - other than deliberate. Compared to roll out of equity options electronic markets like ISE, this is a joke. Effectively, there only a handful of liquid currency pairs... Equity options, for example, have thousands of securities. more options in Q's than total currency pairs.
 
Yep, deliberate - other than they could sweep and shatter all bucket MMs, period. For that reason alone, you would think they would do it.

But the concept of a centralized spot currency and spot currency options market is not in the banks interest - which is why it has not happened to date. It would be like having a centralized high yield, distressed, and convertible bond market.
 
Quote from MiamiHurricanes:

Any thoughts on why CME/Reuters time table is so bloody slow? - other than deliberate. Compared to roll out of equity options electronic markets like ISE, this is a joke. Effectively, there only a handful of liquid currency pairs... Equity options, for example, have thousands of securities. more options in Q's than total currency pairs.
More...

Miami,

I read on another board from a former Reuters employee that Reuters is just really slow at rolling anything new out and that when the proposed date was mentioned, as 2006-2007 the opinion was that it would definitely be 2007 at the earliest.

Depending on how the product is structured, there could still be a niche market for retail bucket shops, but nothing like the "good old days" going on right now.
 
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