Here we go again with the tick changes (just like 6J): http://www.cmegroup.com/tools-information/lookups/advisories/ser/files/SER-7425.pdf?mkt_tok=3RkMMJWW Special Executive Report S-7425 November 19, 2015 Reduction of Price Increment and Amendment to CME Globex Non-Reviewable Trading Ranges of the Euro/U.S. Dollar (“EUR/USD”) Futures Contract Effective Sunday, January 10, 2016 for trade date Monday, January 11, 2016, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will reduce the price increment of the Euro/U.S. Dollar futures contract (“EUR/USD futures contract”) (Rulebook chapter: 261; Commodity code: EC) commencing with the March 2016 contract month and beyond. The EUR/USD futures contract is listed for trading on CME Globex and for submission for clearing through CME ClearPort. Specifically, CME is amending Rule 26101.C. (“Price Increments”) of the EUR/USD futures contract by reducing the tick increment for outright transactions from $.0001 ($12.50) to $.00005 ($6.25) per Euro. Lastly, effective at this time, CME is amending CME Rule 588.H. (“Globex Non-Reviewable Trading Ranges”) to modify the non-reviewable trading range of EUR/USD futures on CME Globex from 40 to 40.0 ticks to accommodate the half-tick reduction in EUR/USD futures. Amendments to CME Rule 26101.C. and CME Rule 588.H. are provided in Attachments 1 and 2, respectively, in blackline format. Please direct questions regarding this notice to: Europe Will Patrick U.S. Craig LeVeille Simon Burnham Kevin McMillin Asia Ravi Pandit +44 20 3379 3721 +1 312 454 5301 +1 312 930 3426 +1 312 930 8264 +65 6593 5562 Will.Patrick@cmegroup.com Craig.LeVeille@cmegroup.com Simon.Burnham@cmegroup.com Kevin.McMillin@cmegroup.com Ravi.Pandit@cmegroup.com
It's safe to assume this is to increase HFT/institutional profits rather than to increase the trade-ableness of this product for retail traders.
Pretty obvious what they are doing; increasing revenue. They will probably charge the same exchange fees for this contract as they do for the current contract. They will be effectively doubling their revenue.
That totally blows, I find the Yen contract way too annoying to actively trade now that an extra decimal place has been added, and this will happen to the euro contract next... Such a shame. It's just too many damn decimal places to keep track of / consider when making lightning fast decisions
I look at it as positive, the spread is 1 tick and it got smaller. I am automating many strategies these days, and it will be interesting to observe this product now. The behavior will probably change. What I personally like about CME that it is as level playing field as possible for those without 10s of millions in infrastructure cost.