NQ tick size reduced

the YM is bogus. it will never be half as liquid as the NQ. if all you care about is range X tick size then trade the dax.
 
Well volumes are down in the NQ....if they were to increase this would be notable to the comparisons made currently...

I think this is a smart move and posturing for market share...NQ is far from dead...


Michael B.
 
Quote from ssternlight:



If they really want to push it they should go to .1 tick size though. Heck, why not $.01 to match the QQQQ's and the index itself. :)
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Thats what the tried with the QQQQ futures...and we all see how thats going. Or rather not going...
 
Quote from rufus_4000:

In my opinion, this is an attempt on Merc's part to reverse the decrease in NQ volume. ES volume is still growing month to month. NQ volume, on the other hand, has lost much to ER (and YM, I believe). So, Merc will probably not mess with a success (ES), but will tinker with NQ.

Merc already tried to increase the messaging cancel / fill ratio for NQ to 10 : 1 (vs 5 : 1 for ES) during 4Q2005. This did not have any noticable affect on NQ volume (it continues to decrease), so now they are trying to reduce the tick size.
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16% vols don't support a $20 handle at $4k overnight margin, but it's certainly a step in the right direction.
 
Quote from TrueRange:

Thats what the tried with the QQQQ futures...and we all see how thats going. Or rather not going...
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The Q futures are 1/40 the size of the NQ contract. I'd bet the additional slippage/commissions more than offsets the tick size there -- OEX/SPX dilemma.

Having said that, for day traders I really think it is both granularity -- tick size -- and volatility -- daily range -- that makes a contract interesting to trade. Of course, for institutions it's primarily liquidity and transaction costs. So there is a clear conflict.

Since stocks trade much larger volume successfully with penny increments I don't see why futures couldn't as well.
 
Very true but keep in mind that the SEC has the ultimate input on index futures/options margins. Hence the advantageous margins in commodities, Treasuries, currencies ect. vs. anything having to do with stocks.
Quote from riskarb:

16% vols don't support a $20 handle at $4k overnight margin, but it's certainly a step in the right direction.
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Quote from Pabst:

Very true but keep in mind that the SEC has the ultimate input on index futures/options margins. Hence the advantageous margins in commodities, Treasuries, currencies ect. vs. anything having to do with stocks.
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Absolutely true, but it doesn't change the fact that the leverage at 8:1 is half of what is available in the ER2.
 
I feel like it should be 1/5 point. That would make it $4. That would be weird, but for some reason, it feels right.
 
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