FESX tick-size

[Pippi436]

Does anyone know how Eurex comes up with a full point? Do they have a chimp and a dart-board somewhere, who draws up their contract specs? Because i fail to see any kind of reasoning behind this. One tick in Fesx is a whopping ~4 BPs while the half-tick in FDax is like 0.7 BPs. I would have thunk it more reasonable to make FDax full-tick and Fesx half-tick (atleast) - and have comparable transaction costs. But, alas, i most likely lack the ingenuity of the eurex product development team.

 

[southall]

Its just the way it is. Like the ES. Exchanges will not mess with something that works so well for them. CME once cut the tick in half on the 30 year bond futures only to back track a year or two later.

In the next secular bull market FESX will go to 10K+, so the spread wont be so bad when that happens.. but we may all be retired by then.