Liffe - Euribor - Total Volume Collapse

id imagine with the new rules coming in there will be a major shake up at liffe.

too many overpaid people there on the back on glory years volume.

reality is those days are gone forever.

their volume is a sham and the net income generated from it is next to nothing now.

the new normal continues with bent income ( fixed income ) taking it the hardest.
 
Volumes holding up fairly ok EDs but WTF has happened to euribor?

Anyone out there thats still playing and can give us a little insight?

Locals losing interest or just another contract dying a death?
 
During times of heightened economic uncertainty one would expect derivative use to rise. However it is evident the opposite is occurring. Why? well I believe it is the unintended consequence of Algo trading. You could argue that its the market becoming more efficient, which could be interpreted as less money to go around. Locals are leaving futures trading at an increasing rate. Its like a death spiral. Volumes fall, participation drops, banks scale back headcount. Etc etc.

I think the decline has significantly further to run.
 
I just checked on yesterdays totals

10 YR 925k

ED 1.3m

ES 2.4m

euribor 387k

Looks to me like activity/participation is still there just not in euribor.

We had a few guys looking at it as well as bobl and schatz but they have gone back to the treasury complex.Are you seeing numbers drop off in your office?
 
Yes indeed, Last month Eurex bunds traded the lowest October amount since 2000, maybe its all just a side effect of the lack of progress in Europe.
 
I had no idea it was that bad.

The guys who quit euro markets just now said that they couldn't take the bs from the algo traders.When they called the exchange support they were basically told to like it or get lost.

Looks like too many traders took the second option.

It's hard to see action returning if it gets much worse,what a waste.
 
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