Eurex says that about 30% of their volume is traded by programs, in some benchmark products the rate is up to 50%. I guess the interest rate futures belong to them. I have no figures for the US interest rate futures, they should be somewhere on the sites of the eCBoT. Regards Bernd Kuerbs
YT This post really says a lot.You clearly used the term 'local' to define daytrader/point and click trader but it's been conveniently misunderstood and to say that locals are 'irrelevant' is about the most absurd thing I've ever heard. Or at least it would be if it weren't written by someone whose firm provides more liquidity than any human could do but omits to say if it actually TRADES more contracts than any human could do. Last time I checked Eurex declared traded volume not nearly traded volume so forgive me for being thoroughly unimpressed.
$preader Your a pretty smart guy. All these black box firms provide "liquidity" like rosy said. However they provide little or no actual trading volume like a local. What good is liquidity if they just keep pulling the shit and never give you much of a chance to hit it. I agree with you 110% that saying locals are not important is the most absurd thing anyone could ever say. Its good to know someone else is on the same page with me on this black box nonsense. Boy, talk about no volatility today in the bund, bobl, schatz! Im about ready to go back to bed and catch a few Zs before school starts in a few hours lol! YT
Well, years and years ago still in the pits, locals were allowed in to provide liquidity. These days, the idea is the same, but compared to the black boxes, the liquidity that locals provide, it just cannot be compared; and with time, the difference will only get bigger. That is why Eurex gives incentives to black boxes, by lowering their commissions, and also by upgrading their lines in order to accomodate more black boxes. You dont see Eurex saying, "we are lowering rates for all human traders out there!!!" Also, take a quick tour around London's prop firms and check out how many traders have left the business in the past few years. And the number of program trading the last few years has just gone one way. Locals are important, but Eurex got their priority right. Specially with technology only improving, there will be more and more black boxes out there with time. I don't particularly like the machines, but they are here to stay, and people just have to realize that and stop complaining. A few years ago, people were complaining about Rotter. Markets are still moving, opportunities are still there, there are still lots of money to be made, so just focus on that. Actually YT also has to focus in school or no Xbox!!
LOL im trying im trying but we have a massive snow storm here in Iowa so they let us out of school early. So I might as well get some trading in YT