emini tick change???

Discussion in 'Index Futures' started by alanack, Jan 29, 2003.

  1. alanack


    A month ago "estrader" started a thread about the possibilty of the CME narrowing the tick in the eminis to less than a quarter of a point. Is this something they're seriously considering? What's the latest?

  2. Don't believe they're considering it all. As I recall, that thread was someone complaining about the tick size and how it SHOULD be narrowed. Can't see it happening though.
  3. Not happening!
  4. Not happening... unless the big boys want it to happen...
  5. :eek:
  6. Tea


    It will happen soon.

    The tick differential between the pit (.10) and the emini (.25) is distorting the market and causing the spread to widen in the pit contract - why should the pit traders give all the money to the emini arbs.

    Now the big guys are starting to get ripped off.
  7. sammybea


    cause you have a bunch of academics like tea who have nothing better to do then push an agenda. Your profits have nothing to do with its spread.. or lack of profits for the whiners. The only thing the CME will be doing is risking participation and higher manipulation since each price level will not be as deep. Heard enough of the arbs complaints. What about me.. the individual investor/trader. The small guy. But i do realize in america there will be liars who pretend to make money but only want a thinner spread so they "think" they will lose less money.
  8. sammybea


    Tea what evidence do you have that the "big" guys are losing money? I would love to see any shred of evidence you have. If the big guys are losing so much money, how come seat prices have been increasing steadily? Lets let the big guys worry about themselves. The only argument you could ever have is purely academic based. But the majority of real traders fear people like you. People who think they know whats best for other people. Sigh. Great job with the decimalization for nasdaq. Too bad there are more games with market makers, less depth at levels, and less participation among the public, and decreased volitility for traders. But at least Tea has a few more pennies in his account.
  9. Tea


    Think about it. The guys in the pit know who the pit arbs are (the guys with the headphones on). Why should they make a .10 wide market and let the arbs grab .25?

    So instead the spread widens to .20+ in the pit and the arbs start making less money.

    However the institutions now have a liquid market with a wider than called for spread - not unlike the Nasdaq 100 stocks in the 80's.

    How long do you think this is going to go on when the institutions are fighting to keep expenses down and their performance up by whatever fraction?

    Narrowing spreads are good news for individual traders. But probably bad news for people who have a vested interested in milking traders through friction and unnecessary expenses.

    P.S. Sammybee - why the hostility?

  10. Don't look now but the big boys are upstairs and they ARE in the mini's.

    The pit bound boys are not stupid, they may live in Chicago, but they're not stupid.

    Never happen.

    Write it in stone.

    Hell, dual trading had to be killed by a FBI sting at the CME. Then to finish it off there had to be an act of Congress, literally.

    But now Rosti is not there to cover their asses.

    Long live the free-market,
    Dr. Zhivodka
    #10     Jan 30, 2003