What are you ER2 fellows doing...

What are you doing about ER2?

  • ER2 forever! I'm going ICEskating

    Votes: 28 33.7%

  • ER2 RIP. Other minis here I come!

    Votes: 47 56.6%

  • It's over. I'm going into real estate...

    Votes: 8 9.6%
  • Total voters
    83
<i>"It won't make anymore sense for the day traders and maybe for those trading baskets of low cap stocks this will be a hedge tool."</i>

From the opening bell to 10:15am EST the ER2 covered a 20-pt / $2,000 per emini contract range.

Meanwhile, NQ covered a 35-pt / $700 per emini contract range... roughly 1/3 the dollar range of ER contracts thru exact same period.

The ER makes one helluva lot more sense for intraday traders of any kind when compared on a relative dollar-movement basis. The NQ has other advantages, but surely not equal dollar weighting with ER

I expect trade costs to be same = similar on ICE as CME, but no serious ER professional will quit for a meager 10-cent trade variance. Dollarwise and penny-whatever logic.
 
Using 3 minute bars, day session only, the average bar range over the last 2 weeks of trading has been $1.24 for ER2 and $3.16 for NQ. Translating both of those figures into dollars and dividing by overnight margin requirements I come up with the following:

ER2: $124/$5250=2.36%
NQ: $63.20/$2750=2.30%

So yes, there is a slight 'bang for your buck' edge in ER2 vs NQ. But in fairness it is not nearly as drastic as today's aberration.

That said, I am sorry to see the ER2 leave CME as personally I have no plans to trade it on ICE, at least not initially.

Quote from austinp:

<i>"It won't make anymore sense for the day traders and maybe for those trading baskets of low cap stocks this will be a hedge tool."</i>

From the opening bell to 10:15am EST the ER2 covered a 20-pt / $2,000 per emini contract range.

Meanwhile, NQ covered a 35-pt / $700 per emini contract range... roughly 1/3 the dollar range of ER contracts thru exact same period.

The ER makes one helluva lot more sense for intraday traders of any kind when compared on a relative dollar-movement basis. The NQ has other advantages, but surely not equal dollar weighting with ER

I expect trade costs to be same = similar on ICE as CME, but no serious ER professional will quit for a meager 10-cent trade variance. Dollarwise and penny-whatever logic.
More...
 
start a thread here when ICE volume for ER2 (or RUT I guess) is equal to YM volume on Globex, then I think you will have lots of converts.

Ray, you guys should contact IB and ask why they are charging clients for the info? Maybe they have some sort of exclusive deal with Globex?
 
Ray, cme is trying to keep as much of the er2 traders as possible by giving emd trades commission free for the rest of the year. Have you got plans to respond to this kind of competition?
 
I was thinking some of you may have individual memberships, but I know some of you don't. Our non-member rates are cheaper than the CME's Russell fees for non-members. I know they have special deals for the 400 and 600, but we don't have anything like that right now.

As I mentioned, we are constantly looking at ways to make our products affordable for the trading community.

on another note, my contacts at IB have asked me to give you this email if you need help on the market data: marketdata@interactivebrokers.com

they again said they do not charge for ICE Russell market data.

thank you
 
Nope, Interactive Brokers apparently hasn't added the data for the index futures to their basic package - the same one we're getting the Globex data on. If you try to add the ICE contract to the quote list in their workstation, it tells you that you have to subscribe to the ICE/NYBOT data. I just tried it again.

Mark
 
Quote from MarkB:

Nope, Interactive Brokers apparently hasn't added the data for the index futures to their basic package - the same one we're getting the Globex data on. If you try to add the ICE contract to the quote list in their workstation, it tells you that you have to subscribe to the ICE/NYBOT data. I just tried it again.

Mark
More...

IB is charging customers 1 pound a month for data.
 
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