I was just looking at the cbot AM leases and noticed that while the price is roughly $1300/month, there are several seat offered below $1000, one even at $700. Does anyone know why the seat prices and lease prices have just taken a beating?
hft/ algo companies dont buy seats. they are 99% of the market. therefore the price goes down. in all honesty the actual point of the exchange building is pretty pointless. the nyse with the stupid flag outside is waste of time. pointless building. the hft mob are 100 miles are away. the exchange building is a non entity.
Partial truth, u realize some quant PhD nerds doing HFT arb are using an edge only obtainable with server colocation.... so the building isn't pointless for these nerds.
HFT absolutely require CME seat licenses. A seat license doesn't just give you a badge for going into the pit, but also allows you to get substantial discounts on clearing fees. That's mandatory for HFTs. If I had to guess... maybe the new extended CBOT trading hours have convinced some smaller locals to finally give up and move off of the floor.
Volume is down and there are less and less traders. This business is dying. I make money, but the business is dying.. slowly.. day by day !
totally wrong. most hft firms are market makers that get paid for providing ' liquidity '. so they get fee rebates and cheap round trips anyway. why do u think the price of the seats is falling? because hft are queing up to buy them? i dont think so. think again and give me another reason.
its all based on volume- the more volume the more players have an incentive to lease seats because they'll save money. as volume drops the number of interested parties also drops so the price drops. if volume continues to drop expect the price of a lease to continue to drop.