CME Group ups bond trading increments

Discussion in 'Financial Futures' started by ASusilovic, Jul 1, 2009.

  1. CME GROUP said Wednesday it will increase the minimum trading increment for U.S. Treasury bond futures to 1/32nd from the current setting of 1/2 of 1/32nd, effective Aug. 30. The change will be applied to all expiration months. The minimum trading increments for futures intermonth and intercommodity spreads as well as options will be unchanged. "There is a renewed focus on the 30-Year contract due to the recent uptick in issuance in the long end of the Treasury curve," the CME said. "Customer feedback indicates that increasing the tick size will broaden participation from active traders who provide much needed liquidity to this important sector of the Treasury market.
  2. a growing trend now.

    the realisation that volume going down with an algo dominated exchange creating NO NEW LIQUIDITY will mean reversion to at least 1/2 ticks in most us treasury issues.

    well done the cme
  3. cstfx


    shouldn't have decreased it in the first place. Volume went down not up, with the 5yr pulling more volume than this. Glad to see it back.
  4. so, who has the advantage to reintroduce the full tick ($31.25) when they asked for it to reduce the cost of hedging the cash?

    maybe the algo accounts are the only players remained and they hope for new blood by retail accounts, attracting them with the full tick?... :eek: