Say No To Thin E-mini Spread
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I'd prefer if the tick size was identical to the pit. That could ultimatley help keeping ES and SP slightly more in line, which would be good. With all the ES liquidity at all levels, I doubt that a reduction in tick size would mean anything other than better fills for most of us. The arb guys will have a slightly tougher game to play.
If you have a Globex terminal/CME membership you can do that. But if you don't its like trying to buy at the bid and sell at the ask in the Nasdaq back before level two in the early 1980's. Sure you can buy at the bid, but only after the bid-ask/offer shifted to where the bid is now the ask.
Am I missing something here? If so, please correct me.
Why would that important to YOU? The only people it would hurt would be the arbs if the ES and the SP were identical in everyway, and probably only slightly so. I supposed that it might help the institutions [maybe, but leaving the possibility open seems reasonable.]
People keep waving their hands in this thread as if opinions mattered in convincing reasonable people of something [else.] Be careful what you wish for, you may get it.
The e-minis are PERFECTLY placed between the pit traded contract and the SPY. Why the communism to try and make everything the same? And to what end?
nitro
Arb volume should be a wash. If you take out the arb dollar volume from the Emini dollar volume, you also have to take it out of the SP which is the other side of the arb. So, the dollar volume in both contracts would still be about equal (though lower).
(metooxx: I'm a little unclear as to whether this was your point or whether you were just saying divide the Emini volume by 5 to compare it to the SP).
Quote from nitro:
Why would that important to YOU? The only people it would hurt would be the arbs if the ES and the SP were identical in everyway, and probably only slightly so. I supposed that it might help the institutions [maybe, but leaving the possibility open seems reasonable.]
People keep waving their hands in this thread as if opinions mattered in convincing reasonable people of something [else.] Be careful what you wish for, you may get it.
The e-minis are PERFECTLY placed between the pit traded contract and the SPY. Why the communism to try and make everything the same? And to what end?
nitro
Because a wider tick means a wider spread which takes money out of the pocket of every Emini trader who is not trading from a Globex terminal.
It is a simple matter of Emini traders paying more in costs than they should. If you are a Globex terminal trader I understand your wanting to maintain your take, much the way any other middle man wants to keep his cut - but the Emini market is mature enough where it doesn't need arbs and a .25 tick.
Yes we need market makers who can profit from a .10 tick (like in the pit), we just don't need the arb anymore.
Whaaaaaaaaaaaaat?
So, if you had a .10c spread, now you would be losing your money slower to the people with Globex Terminals??????? Like I said, if you have a winning method for the ES, trade the SPY if the ES contract size is beyond your means!!! There, the spread is almost always .01 to at worst .05, and there are no traders with Globex Terminals around.
As to "paying more costs then they should" how do you figure that? In order to have access to a Globex machine, you have to pay big bucks. Seems like their costs are higher than yours to me, not less.
If a Globex machine is such a great advantage, why not go and get one? It should pay for itself in no time according to you!
nitro
Best of luck to them for what? The only place on this planet that an SP futures contract can be traded is at the CME. Only THEY can allow it to be traded somewhere else [why they would allow it is beyond me...]
In case you haven't noticed, the CME went public at the NYSE. The demand for the stock was so great that it drove the price up hard the first day, and most that were trying to get in the IPO got a fraction of the number of shares that they had hoped. All this in an enviroment where large institutions wouldn't dream of an IPO.
More appropriate perhaps is, GOOD LUCK TO YOU.
nitro