EurexUS, will it work?
- Thread starter tighttrigger
- Start date
Market share in the 5 year futures soars to 13% during core trading hours 5 year futures on Eurex US traded over 35,000 contracts yesterday, with overall market share exceeding 10% for the entire trading day, and during core hours surpassing 12.9% market share. Yesterday's detailed volume and open interest figures for the 5 year futures contract: 5 Year Volume: 35,059 Open Interest: 19,987 Avg. depth for 1 tick market: 314 x 327 And keep your eyes on Eurex US today, by 12:30 PM the 5 year futures had already exceeded 14% market share. Thank you for your participation.
To really challenge the CBOT you need to have deeper markets ACROSS the yield curve. I think I remember that when eurex took the Bund from liffe, eurex already had leading market share in 2-5 year products. If you offer deep markets for spreading, you will get the volume (and ease of spreading US/German rates is not a CBOT killer) .
On the equity side EUREX US should link up with the ISE options exchange and have the ISE set up a cash Russell1000 option product. Then they could go after traders who are fed up with bad fills in the cboe SPX pit!
A couple of hours ago, I walked out of a meeting with EurexUS management and learned that the Russell 2000 and Russell 1000 will be launched on February 4. They have signed up various market makers already.
It will be traded at an exchange fee of 5 cents per side per contract for everyone. So add to that commission charges, etc. This is in comparison to the CME's exchange fee of $2.25 per round turn for non-members.
The success of this product is obviously a function of its liquidity and relationship to the CME's ER2. It will probably take a bit of time for it to take off in volume, but it will be much more attractive for non-members of the CME.
Best wishes.
It will be traded at an exchange fee of 5 cents per side per contract for everyone. So add to that commission charges, etc. This is in comparison to the CME's exchange fee of $2.25 per round turn for non-members.
The success of this product is obviously a function of its liquidity and relationship to the CME's ER2. It will probably take a bit of time for it to take off in volume, but it will be much more attractive for non-members of the CME.
Best wishes.
Well... I'm a member of CME and I haven't gotten any bulletins. They will have to target the retail crowd with a better commission. Even as a member, I don't come close to 5cents per side. I think that if there is enough liquidity on EurexUS, I would rather give them the business. EurexUS can be a powerful contender but their entire incentive program, timing and cost of lines to clearers is off.
Many clearers are dropping the lines now because the rebate program is gone. They need to act fast. But then again, they have unlimited bankroll, so they might make it.
I was asked in November to be a market maker for the 1000 and 2000 and I declined it. You get to trade for free in addition to some kickbacks for volume. They can offer that. Also, I couldn't squeeze out of them whether or not they will have an incentive for the Russell as they did for the treasuries....... I got a smirk. I think they will if there isn't enough interest.
Futurestrader71,
Thanks for keeping us informed! I will not have the EurexUS ER2 up day one so keep me informed of what you think about it. The CME is debating a response. They are looking at the lack of success with EurexUSA's treasury attack and trying to think through IF they need to do anything at all. Maybe--- pride before the fall?
Thanks for keeping us informed! I will not have the EurexUS ER2 up day one so keep me informed of what you think about it. The CME is debating a response. They are looking at the lack of success with EurexUSA's treasury attack and trying to think through IF they need to do anything at all. Maybe--- pride before the fall?
They will have to do something. It doesn't bother me either way. The Russell will ultimately be listed on 4 exchanges. They don't have an exclusivity agreement with anyone.
I agree. The Merc will have to get competitive. Either way --traders WIN! Competition is GREAT. 4 exchanges???? Who?? I only count 2? I know Russell does not have an exclusive with anyone (like Standard and Poors does with the Merc). However, I cannot imagine one futures product being liquid on four exchanges??
The Cme should be concerned with the R1 as well. It is a close beta to the spoo. I know institutions that want to make EurexUSA work on this one. They HATE the Merc and they are bitter.