Eurex Trading Volume

i think there are a few points here to address:

(1) the total volume is still very high and masks the underlying problem on the exchanges so they wont probably address the fall in bond volumes.

(2) the majority of their business seems to come from newer products that have come on in the last few years and these products are new in comparison to the bonds.

(3) once algo/quant based systems have squeezed all easy edges and money from the newer contracts the volume on these will decrease as with the bonds.

(4) based on volume transaction rates for huge round trippers of which all the top ten maybe 20 customers on eurex are all algo/quant based companies they cannot be earning more revenue because these guys are trading 5-10 euro cents per round trip.

(5) if the trend of eurex bonds enters into the other eurex products the volume will decrease gradually over time and so will the exchange revenue and share price.

basically they are fucked in the long run.

what does the mean for people like me.

not sure really. still here. still paying full rates to the exchange.
what does my account manager at eurex do for me.

nothing.never met him. they dont contact me. they dont represent me or anything i have to say because i am just a small 2 bit player.

goodnight and god bless.
 
Quote from THE-BEAKER:

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basically they are fucked in the long run.



As I previously stated ,EUREX are prepared to take this hit in drop off in Local Volume, in order to faciliatate the ever increasing Algo/quant volumes-which in a few years time will be significantly higher than they are at present, due to increased effiecincy/tweaking /more funds etc..

My buddy in Chicago used to be a big round tripper in the Bunds/Bobl( around 20k a day).However now I think he is turning out around 1000 max.But the game has changed.No point in moaning about it.As Jack Hudson says:

"IF you dont like the odds don't play the game"

Off to buy a smoothie, oh and some more Oil:p
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Quote from SWINGTRADER77:

which in a few years time will be significantly higher than they are at present, due to increased effiecincy/tweaking /more funds etc
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This doesn't necessarily equate to more volume. If they become more efficient they will trade less to achieve the same goal.

Greater liquidity and depth is needed to achieve volume growth.

I really don't think they intented to take this much of a hit .
 
" in a few years time will be significantly higher than they are at present, due to increased effiecincy/tweaking /more funds etc.."

I don't get this argument.
Care to back it up?
 
Personally I think the volumes will slip,this has nothing to do with my views on Eurex as an entity but more to do with when the algos have killed off the last few locals and the word around town is "avoid at all costs",therefore attracting no new "blood".

If this happens then there will be less vol for the models to go after and they will all be chasing the same trade turning what are now regular moves into wild spikes which could in turn make the bund an even more disorderly market.
 
Quote from $preader:

If this happens then there will be less vol for the models to go after and they will all be chasing the same trade


"will all be chasing the same trade"-is'nt that what all the locals do anyhow?? "fastest finger etc.."- now its the "fastest bot"-as we all know SPEED is key in this game, especially if you are looking to scalp a few ticks etc...
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"isn't that what locals do anyhow"

Shit locals do,that's why the models on Eurex have chewed them up and spat them out.

You've missed the point,it's about NOT having enough liquidity,re-read Bond Trader 50's post and all will become clear.
 
Quote from BondTrader50:

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Greater liquidity and depth is needed to achieve volume growth.

The depth is created by the bots etc...whatever is advertised in the book seldom trades out-and if it does- it will be all in 1 clip etc...

Further depth is created by locals " working orders".However, at my desk- not many guys are working orders now-due to as soon as getting filled 9/10 times the said position is off-side.( blink and your 3 ticks offside)That is unless you are working orders a point from the high/low and get a fill on one of those huge 2 stops we have been seeing in the past few months:p- but that is hardly "trading".

How many locals do you know that currently work orders in the book on the European Fixed income?:p
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