AHA
finally someone woke up.
good news for traders like myself.
once one exchange did it the rest will follow.
still think they are doing it for the wrong reason though.
this will halt algos based companies ability to trade.
they need 1/2 ticks.
easier to push around and for transaction costs.
expect eurex to follow suit with the bobl returning to a full tick.
NYSE Euronextâs Liffe derivatives exchange will increase the minimum increment of price movement, or tick size, on its U.K. short-term interest rate contract to battle falling liquidity amid the financial crisis.
Liffeâs short-sterling futures contract will be quoted in increments of one basis point from Feb. 23, according to Paul MacGregor, director of fixed income at Liffe, Europeâs biggest futures exchange. Until now, the minimum size was half a basis point.
âWe are responding to the global financial crisis,â MacGregor said in an interview in London today. âWe have consulted and this is what the market would prefer. The global liquidity crisis has changed the market beyond all recognition. Moving back to a full basis point will help build liquidity in the product.â
Liffe, based in London, is responding to unprecedented volatility as financial-institution credit-related losses and writedowns related to the U.S. mortgage-market collapse surpassed $1 trillion and the U.S., Japan
http://www.bloomberg.com/apps/news?pid=20601102&sid=anNf5lbFPYWo&refer=uk
finally someone woke up.
good news for traders like myself.
once one exchange did it the rest will follow.
still think they are doing it for the wrong reason though.
this will halt algos based companies ability to trade.
they need 1/2 ticks.
easier to push around and for transaction costs.
expect eurex to follow suit with the bobl returning to a full tick.
NYSE Euronextâs Liffe derivatives exchange will increase the minimum increment of price movement, or tick size, on its U.K. short-term interest rate contract to battle falling liquidity amid the financial crisis.
Liffeâs short-sterling futures contract will be quoted in increments of one basis point from Feb. 23, according to Paul MacGregor, director of fixed income at Liffe, Europeâs biggest futures exchange. Until now, the minimum size was half a basis point.
âWe are responding to the global financial crisis,â MacGregor said in an interview in London today. âWe have consulted and this is what the market would prefer. The global liquidity crisis has changed the market beyond all recognition. Moving back to a full basis point will help build liquidity in the product.â
Liffe, based in London, is responding to unprecedented volatility as financial-institution credit-related losses and writedowns related to the U.S. mortgage-market collapse surpassed $1 trillion and the U.S., Japan
http://www.bloomberg.com/apps/news?pid=20601102&sid=anNf5lbFPYWo&refer=uk