Fixed Income Futures Volume End Down On The Year For The First Time Ever

[THE-BEAKER]

well another year passed and finally the annual volumes were released by eurex.

i didnt see a press release for this one with the usual fanfare but then again this is not the sort of thing people like to read about.

bobl volume down 4.14% for the year compared to 2006.
bund volume down 13.65% for the year compared to 2006.
shatz volume down 14.20% for the year compared to 2006.

in a year where fixed income was extremely busy this does not bode well for the exchange.

mark my words this is serious.

the first ever year on year fall since eurex began.

the reason for this as i have explained before.

algo based systems, neural networks and any kind of pre programmed bollocks that is allowed to trade with very little cost is destroying the business.

the figures speak for themselves.

as for my own trading i did ok in january to march, struggled april to july and then did fantastic august to december.

mostly as a result of sub prime meltdown and the fact that some algos ran home to mama crying leaving the exchanges with no liquidity.

where did the alogos go traders and exchanges asked.

went up shit creek without a paddle is where they went.

anyway lets see how they get on in 2008.

i predict a new trend for the volumes and it aint up.

wake up exchanges.

get rid of these algos and the wankers that run them.

they deserted you in august and they will desert you again.

show some loyalty to real traders and reduce my brokerage.

happy new year everbody.

shit new year to any algo based company and hope you lose the lot.

 

[$preader]

The truth is that people have had enough of trading these long-end products.There still are some decent contracts out there,but the bund is living off of reputation,the way these models push it around is a joke.The real volume traders just aren't doing the business,they're being replaced by a bunch of shitheads position taking in tiny size - not the sort of client the Exchange could care less about.

Bobl volume especially has been laughable this year to date.If those stats are correct 2008 could be another bleak year,still,all the Exchanges have been so unsympathetic to the poor bastards getting screwed over unknowingly by some flash computer model maybe it's time they felt a bit of pain.

 

[Dogfish]

Yeah I agree with much of the above, especially how thin that bobl gets these days, but still i'm not sure I'd swap it for the days of the flipper and the 5000 bund bid/offer book (in a way it's nice to see the book flushed out). Both equally challenging, although you can't trade the size you could back then without the book now running away from you.

Anyway wishing you all a happy and prosperous 2008

Seems no one told the CFO about the dropping vols on eurex...

<b>D.Boerse expects record earnings in 2008 -CFO</b>
Fri Jan 11, 2008 2:26pm GMT

By Jonathan Gould and Annika Lehmann

FRANKFURT, Jan 11 (Reuters) - Deutsche Boerse (DB1Gn.DE: Quote, Profile, Research) expects record earnings this year, helped by revenues from volatile market trading, its chief financial officer told Reuters on Friday.

"We conclude from our planning and preparation for 2008 that it will be another record year," Thomas Eichelmann said in an interview, adding that it was hard to forecast if the earnings jump would come mainly from rising trading volumes or faster growth in certain product areas.

His comments helped boost the company's shares, which were up 2.6 percent at 1412 GMT, in an otherwise flat German market .GDAXI.