Eurex Comes to US Markets

[Dr. Zhivodka]

Quote from Maverick74:

Where are all these people that said Eurex was going to put the Chicago exchanges out of business?

I don't know if they will or not but one thing is for sure it is WAAAAY too early to tell who will win this battle.

Plus, now that the CBOT has dropped their fees it could be just a slower race to the alter with the CME for them.

Either way we're all paying less to trade the curve now. Gotta love that.

Viva la competition.

 

[Eugene]

The only thing that will save Eurex is liquidity from their brethren. As I understand it, UK and European firms can't trade yet in the US on these Eurex products...Don't know the size but until they check in we can't write the end of the story yet.

 

[saschabr]

Quote from Eugene:

The only thing that will save Eurex is liquidity from their brethren. As I understand it, UK and European firms can't trade yet in the US on these Eurex products...Don't know the size but until they check in we can't write the end of the story yet.

Uhhmmmm... I think that is not correct.
Most participants should be able to trade EurexUS, from the technical view as well as legal issues.

 

[FX-Trader]

Quote from Eugene:

The only thing that will save Eurex is liquidity from their brethren. As I understand it, UK and European firms can't trade yet in the US on these Eurex products.

Of course you can trade from UK and Europe. But EurexUS is stupid enough to tell everyone and his dog, that you cannot trade and must wait 6 months for FSA approval or something like that.

 

[Eugene]

Below is a link to the only European/UK countries approved to trade.

http://www.eurexus.com/about/company_info/european_access.html

 

[Maverick74]

Anyone see CME lately? The stock is making a new high today at 93. It doesn't look like the Merc is hurting. That stock is on fire. I thought the Merc was going to shut down for business as soon as Eurex started trading. I don't understand. Why is the stock making all time highs?

 

[Chitown]

Quote from misctrader:

Maverick,

Great call! However, I wouldn't totally discount EurexUS. It's not enough time. But it's great that Chicago can adapt and change. These changes end up helping the endusers out(lower fees,etc.)

However, in the long run, EurexUS could still win or the cbot/cme could try to go all electronic. So who knows.. Too short of a time period. But every institutions that ever tried to stop the progress of technology and institutional/societal changes usually ended up being the dinosaur and extinct. Typewriter companies(SmithCorona) aren't really around anymore. Horse carriage. Telegraph. You get the idea...

Nice try but as was mentioned before there is no way to get a good fill on Eurex or any screen on any order of size. Too many institutions have it good in the pits and that is what matters. That is who is ultimately going to decide the fate of the CBOT and any pit. It is not somebody who is trading 1 lots. When the institutions bring their orders outside of the pits thats when things will start to unravel.

Since the issue in your post is time...When the institutions pull their orders from the pit to the screens it will be with the CBOt still. There are too many alliances there.

IMO, worse thing that happened to the CBOT was Arbor wasting the millions on the new building. Horrible mistake and waste of money.

 

[FX-Trader]

Quote from Eugene:

Below is a link to the only European/UK countries approved to trade.

www.eurexus.com/about/company_info/european_access.html

* Belgium
* Finland
* Gibraltar
* Ireland
* Sweden

Just what I said, they publish such a stupid list and give the impression that you cannot trade EurexUS from France, Germany, Italy, Luxemburg, Switzerland or UK. Makes me ROTFL !

 

[saschabr]

Eugene,

I can assure you the London guys are _able_ to trade EurexUS.

 

[Cutten]

Mav, Pabst - was your prediction that the bond pits would survive? Or that Chicago would survive, but in screen form? I don't think anyone said Chicago would die if they went electronic and got competitive on fees?

So far I see CBOT slashing their screen fees. That makes the screen relatively more attractive compared to the pit. This just hastens the demise of the floor IMO.

People are confusing pit vs screen with CBOT vs Eurex. The screen will kill the pit, regardless of whether it is a CBOT screen or a Eurex screen.