Great point Pabst. The has been a failed attempt to attract big money from hedge funds and the like. Its much easier to hedge a 100 million portfolio in the ES rather than a retail contract like the YM. Now that the CBOT is public, they should be a little bit more aggressive in cleaning up this mess. Eliminating the CBOT Dow ($10) would be a start.
Official DD thread - Big Dow
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Great point Pabst. The has been a failed attempt to attract big money from hedge funds and the like. Its much easier to hedge a 100 million portfolio in the ES rather than a retail contract like the YM. Now that the CBOT is public, they should be a little bit more aggressive in cleaning up this mess. Eliminating the CBOT Dow ($10) would be a start.
But the pit-traded SP was trading 75,000 a day at a 250x index value. In fact even with the immense success of electronically traded index futures, notional values in SP/ES have not tremendously increased from the pre-Globex days.
I was in the Dow pit from day one in 1997 and know first hand the struggle narrow based indices (remember the MMI in the late 80's) undergo in attracting institutional usage. The CBOT should be thrilled that the YM has grown as much as it has. If up to me I've cut the baby in half by going 100x as a spec size(same as the DJ pit). In the same way, many would love to see ES go 100x and trade in dimes.
I was in the Dow pit from day one in 1997 and know first hand the struggle narrow based indices (remember the MMI in the late 80's) undergo in attracting institutional usage. The CBOT should be thrilled that the YM has grown as much as it has. If up to me I've cut the baby in half by going 100x as a spec size(same as the DJ pit). In the same way, many would love to see ES go 100x and trade in dimes.
Hehe, I have almost forgot it exists... it is becoming extinct 