index futures listed on both ICE and CME

T

TD877

I'm learning about futures now (not trading, but plan to trade one day). I've see that the Russell index futures are transitioning from ICE to CME (http://www.reuters.com/article/cme-lse-ice-idUSL1N10E2JZ20150803).

"Derivatives based on the Russell 1000 indexes will be listed on CME in the fourth quarter and will trade on both CME and ICE until July 1, 2017".

So does this mean that the same contract is traded on both exchanges, or that each exchange has their own contract for the same derivative? It seems from free charts available that the volume is still on the ICE side, any idea when it will significantly shift to CME? I would like to trade these indexes on CME, but not if the volume is horrible.
 
Deuteronomy_24_7 said:
Russell has played CME and ICE off against each other for years, so as to maximize license revenue. This is the latest iteration.
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And every time they do that, volume reduces, they need to make good deal with CME and leave it there. Mini Russell use to be great market to trade with decent volume, but traders don't want to pay more fees, just way too many instruments to be playing around. Eventually it will become like old Value Line or what was that other one that went kapoo, it was out of New York I think, long ago.
 
TD877 said:
I'm learning about futures now (not trading, but plan to trade one day). I've see that the Russell index futures are transitioning from ICE to CME (http://www.reuters.com/article/cme-lse-ice-idUSL1N10E2JZ20150803).

"Derivatives based on the Russell 1000 indexes will be listed on CME in the fourth quarter and will trade on both CME and ICE until July 1, 2017".

So does this mean that the same contract is traded on both exchanges, or that each exchange has their own contract for the same derivative? It seems from free charts available that the volume is still on the ICE side, any idea when it will significantly shift to CME? I would like to trade these indexes on CME, but not if the volume is horrible.
More...

There will be a shift from ICE to the CME while trading on the CME exclusively.

The article states "The deal, which will give CME exclusive listing rights for contracts on FTSE Russell indexes once ICE's agreement with Russell expires in mid-2017..."
 
MattZ said:
The article states "The deal, which will give CME exclusive listing rights for contracts on FTSE Russell indexes once ICE's agreement with Russell expires in mid-2017..."
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Exactly. CME wouldn't pay up for a license if ICE were allowed to continue its version. Volume would have no reason to move over.

A better question is why CME doesn't just list its own "CME smallcap index" futures and tell Russell to go pound sand.
 
Deuteronomy_24_7 said:
Exactly. CME wouldn't pay up for a license if ICE were allowed to continue its version. Volume would have no reason to move over.

A better question is why CME doesn't just list its own "CME smallcap index" futures and tell Russell to go pound sand.
More...

I think there has to be an underlying cash index product first. CME creates derivatives on cash indices.
 
Deuteronomy_24_7 said:
Russell has played CME and ICE off against each other for years, so as to maximize license revenue. This is the latest iteration.
More...

The TF is dead, long live the ER2, coming back to us from the dead.

I remember hearing a rumour ICE stole it from CME at the last minute.
CME weren't even allowed time for a counter offer to keep it.

I also recall before 2008, ER2 had better volume than TF has now.

ICE are charging retail $1000+ a year for TF real time,
so im glad they are losing it,
although i would not be surprised if CME ups all their data fees to retail at some point.
 
southall said:
A better question is why CME doesn't just list its own "CME smallcap index" futures and tell Russell to go pound sand.
More...

CME listed the S&P 600 small cap futures when they lost the ER2 futures but it didnt take off. No one wants to trade it.
Everyone wants the Russell 2k.
 
Handle123 said:
And every time they do that, volume reduces, they need to make good deal with CME and leave it there. Mini Russell use to be great market to trade with decent volume, but traders don't want to pay more fees, just way too many instruments to be playing around. Eventually it will become like old Value Line or what was that other one that went kapoo, it was out of New York I think, long ago.
More...

Mini Russell will get worse when it heads to CME in my opinion. You're protected against easy cheap arb right now which is what makes TF have different action.

People keep whining about data fees on ICE but I guarantee you they'll just give it all back once it's on CME.
 
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