New futures exchange

[thisisbabak]

Anybody heard about the new futures exchange hoping to challenge the CME's monopoly on UST-futures? Apparently the likes of Citadel, Getco and Peak6 are backing the new exchange which should make it popular with high volume/frequency traders.

http://www.reuters.com/article/bankingfinancial-SP/idUSN2129659820071224

 

[BondTrader50]

I'm looking forward to it. The liquidity in the treasuries has been dismal for the past month or so.

CME will probably slash their rates to fend them off though.

 

[thisisbabak]

Good point, I think the CME slashed fees in 2004 to fend off the Eurex threat - but then subsequently increased them once the threat was gone. It'll be interesting to see how this unfolds.

 

[Bernard111]

With the fees slashed by the CBOT the Eurex was not able to compete with more than the 7% on the US Tsy mkts.

What should Citadel & C make on their business plan to gain better luck than Eurex?