Just got this note from CME: January 13, 2019 – 2-Year Treasury Note futures prices will extend to 8 decimal places. All customer systems must be ready to process 8 decimal place prices and the corresponding fractional display. Earth shattering.
Well, hopefully it won’t make implied pricing even less advantageous for liquidity providers - but I’m skeptical.
Sorry was being facetious. I’m not familiar with notes so can’t say much. Just thought it’s insane to quote something in that small of increments.
I hate those finanical instruments with sooo many digits. instruments like heating oil, hang seng index, euro, SGX china A50 ... should have the number of digits reduced. anyway nowadays I just click BUY / SELL AT MARKET PRICE. Don't want to spoil my eyesight looking at those numerous digits. best is crude oil futures ... - only 4 digits. 5 digits - copper futures 6 digits - euro futures, T notes, s&p 500 e mini 7 digits - SGX ftse/xinhua china A50 index !!! There are some trading platforms that can cut down the number of digits to something more managable for some of the instruments. Hope to find a much better trading platforms which give can do that for all instruments.
Look at it this way... Why is the YM easier to trade then the ES? For a lot of reasons, but the big one IMO is that for every 1 point the ES moves, the YM typically moves 10. There are 4 ticks in that 1 move for the ES and 10 ticks for the YM. Who's grabbing those extra 6 ticks? It's not the ES traders (the ES is great for other reasons). More ticks means less waste/smaller spreads. Having said that, I'm not a fan of this change.