PIMCO on Floor Vs. Screen

Quote from Maverick74:

It is a very unique index because there are only 30 stocks and its price weighted.
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you just crossed into "said too much" land. :)
 
Today the Eurex CEO will be in Chicago to announce more details about their new American exchange.

Maverick: make hay while you can. All good arbs or leading indicators go away eventually - usually sooner than later. Get on a good sizing program and develop it.
 
Hello everyone,

Yeah, it really looks like Eurex and LIFFE are doing pretty well in the US. People do not trade somewhere unless there is liquidity. And as of right now, there is no liquidity at either of those exchanges. Also, the Merc stepped up to the Eurodollar challenge and now look at how quickly much of the business shifted off of the floor. As of right now, customers get to choose their preferred venue to trade many popular products and look at the margin savings created by the common clearing link. Never underestimate the greatest country in the world. The floor will phase out when the technology becomes better, and in the case of Eurodollars, butterflies and options will soon be available on the screen, so that may be sooner than later.

Also, as someone who has worked on the floor as a clerk and has many friends whose father's trade on the floor I have learned that you have to adapt. Which is why I have begun looking for work off of the floor at a prop firm. The opportunities to trade electronically are endless, and don't underestimate Chicago once the floor completely shuts down. Volumes are exploding as a result of offerring both venues, specifically in Eurodollars, and it doesn't seem like there is an end in sight. The Merc traded over 3 million Eurodollar contracts last Friday after that jobs number. Yeah, I guess there is no money to be made trading in Chicago on or off the floor.

mcurto :cool:
 
Quote from mcurto:

Hello everyone,

Yeah, it really looks like Eurex and LIFFE are doing pretty well in the US. People do not trade somewhere unless there is liquidity. And as of right now, there is no liquidity at either of those exchanges. Also, the Merc stepped up to the Eurodollar challenge and now look at how quickly much of the business shifted off of the floor. As of right now, customers get to choose their preferred venue to trade many popular products and look at the margin savings created by the common clearing link. Never underestimate the greatest country in the world. The floor will phase out when the technology becomes better, and in the case of Eurodollars, butterflies and options will soon be available on the screen, so that may be sooner than later.

Also, as someone who has worked on the floor as a clerk and has many friends whose father's trade on the floor I have learned that you have to adapt. Which is why I have begun looking for work off of the floor at a prop firm. The opportunities to trade electronically are endless, and don't underestimate Chicago once the floor completely shuts down. Volumes are exploding as a result of offerring both venues, specifically in Eurodollars, and it doesn't seem like there is an end in sight. The Merc traded over 3 million Eurodollar contracts last Friday after that jobs number. Yeah, I guess there is no money to be made trading in Chicago on or off the floor.

mcurto :cool:
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Dude, Eurex rocks man. They are trading like 1500 contracts a day in the US. That's right, 1500. LOL. Sure it might not be the 3 to 5 million that trade a day on the CME and CBOT but still man, 1500 is great! I mean, some days when it's really crazy, they get up to 2000 or so. Oh yeah baby, go Eurex! :D
 
I haven't been around the Dow pit since the advent of YM, but in the pit's infancy most arbs, with the exception of Timber Hill, were trading DJ vs. SP. While there is certainly a high serial correlation between the two, it was far from a riskless arb.
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while not a riskless trade ... there is a high level of consistentcy as long as you're willing to sit on the DJ vs. SP spread for days or weeks as needed.
 
The big boyz already have the game running where they need it.

Never gonna get them to move to a different table, unless the suckers move thier first.
 
Quote from Maverick74:

Well my prediction is that America is going to kick Eurex's ass. I'm going to call it first on here. I think the CBOT, the Merc, and the CBOE are going to merge to one exchange. There will be one clearing house and one electronic platform. They will blow eurex out of the water. There is a lot of loyalty in this country to the Chicago exchanges, it's just a matter of making the whole thing work so it flows like a well oiled engine and it will. The Eurex is very desperate right now. They tried to merge with the Philly, philly said beat it, so did the PSE and they are on the verge on going under and still turned them down. CBOT and CME just laughed at them. Now they are trying to hook up with the BOX but BOX doesn't need them or want them. So now they are talking to regulators to form their own independent exchange. Good luck. But if you guys think Chicago is going to roll over and let that eurotrash exchange come in here and make better mkts then us then we'll see. One exchange in Chicago, you heard it here first.
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Just for fun, I thought I would bring one of the older threads back from the dead in light of my accurate prediction. While I called these events two years ago on this very site, I took a lot of heat for my predictions.

But just as I have predicted, it looks as though a CME/CBOT merger is inevitable, Eurex has been thoroughly beaten to a pulp and Chicago is still alive and thriving. As we speak, both the CME and CBOT are shattering volume records.

Where are all the Eurex defenders these days anyways?
 
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