Jumbo SPX

F

fk1028

Look at this link -http://www.tradersmagazine.com/news/box-gets-ok-to-trade-jumbo-etfs-111176-1.html

Jumbo SPX will start trading this Friday. What is the advantages and disadvantages of trading SPX and SPXJ?

The one advantage is the pass thru rate of the commission is much less for SPXJ.


Thanks,

Frank
 
Will this trade exclusively on the BOX exchange?

I will certainly watch the volumes and the spreads. I suppose any competition to the CBOE SPX is a good thing.
 
The details is not clear. Placing a couple of trades on Friday will review whether this new SPXJ is useful. The Commission is less because of the pass thru rate. But the one that matters are the trade volume and the strike price increment. Looks like it'll be 0.01 instead 0.05. This would create a tighter spread and not so good.

Frank
 
dont have a clue but what if the largest amount of cash trades thru the fewest hands,say the world's 10 largest banks,this just excludes in some ways a lot of uninvited players,poorer accts, and gives more control to those players as it will dominate the markets beneath it
 
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