I'm pretty sure the commissions will be adjusted like they are in micro lots for 6E GC etc
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The weenies are coming!!
- Thread starter tiddlywinks
- Start date
What else ... hot and sticky.ROFL.....whats weather like in Fl?
Most likely - if not the volume certainly won't be there. And don't know about you but volume is important to me and I would think most others as well.I'm pretty sure the commissions will be adjusted like they are in micro lots for 6E GC etc
One simple and obvious reason - if the volume is not there the CME will shut them down.
I think the products will do well, meaning there will be solid interest. No where near the volume of the larger counterparts, but solid.
At 1/10 size, the margin requirements (even without intraday margin) will open up new participant groups. Commissions/fees (and intraday margins) are (mostly)broker dependent, but if administered properly, and assuming proper bid/ask tracking, solid interest will follow, I have no doubt. Since the tic increments are the same as the larger contracts, and only the value of the tic is different, I don't see bid/ask being an issue. OTOH fungibility can lead to arbitrage, which with frequency, would destroy the products for retail use.
At 1/10 size, the margin requirements (even without intraday margin) will open up new participant groups. Commissions/fees (and intraday margins) are (mostly)broker dependent, but if administered properly, and assuming proper bid/ask tracking, solid interest will follow, I have no doubt. Since the tic increments are the same as the larger contracts, and only the value of the tic is different, I don't see bid/ask being an issue. OTOH fungibility can lead to arbitrage, which with frequency, would destroy the products for retail use.
Thank you to @Robert Morse for this update, posted in a different thread.
https://www.elitetrader.com/et/thre...ing-for-solutions.331240/page-14#post-4835641
Yes, it's difficult to know what fee applies to any particular broker, but using the non-member tier "should" give a worst case.
With that basis, I see .20c for both CME and CBOT products. Add in a commission for the broker and it's likely MNQ, M2K, and MYM will have at a minimum 2 tics per-side breakeven NET (4 tics minimum RT, NET). While MES may sneak in at 1 tic per-side breakeven NET (2 tics RT, NET).
https://www.elitetrader.com/et/thre...ing-for-solutions.331240/page-14#post-4835641
Yes, it's difficult to know what fee applies to any particular broker, but using the non-member tier "should" give a worst case.
With that basis, I see .20c for both CME and CBOT products. Add in a commission for the broker and it's likely MNQ, M2K, and MYM will have at a minimum 2 tics per-side breakeven NET (4 tics minimum RT, NET). While MES may sneak in at 1 tic per-side breakeven NET (2 tics RT, NET).
Equity Index Advisory
Effective Sunday, May 5, 2019, for trade date Monday, May 6, 2019, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME”) and The Board of Trade of the City of Chicago, Inc. (“CBOT”) (collectively, the “Exchanges”) will list the Micro E-mini S&P 500 Index Futures, Micro E-mini Nasdaq-100 Index Futures, Micro E-mini Russell 2000 Index Futures and Micro E-mini Dow Jones Industrial Average Index Futures contracts (the “Contracts”) for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
Effective Sunday, May 5, 2019, for trade date Monday, May 6, 2019, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME”) and The Board of Trade of the City of Chicago, Inc. (“CBOT”) (collectively, the “Exchanges”) will list the Micro E-mini S&P 500 Index Futures, Micro E-mini Nasdaq-100 Index Futures, Micro E-mini Russell 2000 Index Futures and Micro E-mini Dow Jones Industrial Average Index Futures contracts (the “Contracts”) for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
Important question though is what will the commissions be. At least in ES, when you make a tick, you also make about $8 for yourself. With NQ, if you make a tick, you get about $1, but at least you covered commissions. With 1/10 the value, you will now need to make a few ticks just to break even if the commissions will stay around $4 roundtrip per contract.
I saw somewhere $2.72 per RT in ES. But cannot find it anymore. That would be expensive.
That really would be far too expensive. The contract is 1/10 the size, and the cost is even less than 1/2 as much. Then on top of this, you might get slippage depending on the volume.I saw somewhere $2.72 per RT in ES. But cannot find it anymore. That would be expensive.
That really would be far too expensive. The contract is 1/10 the size, and the cost is even less than 1/2 as much. Then on top of this, you might get slippage depending on the volume.
It would make it more difficult for starters then trading the ES, as the cost is percentage wise much higher. So better start with the ES then and not with the micro's. If the tick value is 10 times smaller, all the rest should be 10 times smaller too.
about time this was talked about for years. i like this as i have stalled my brother in law for a year fearing he will blow up in days.