It is all about the size you trade, for example, Aaron wants a minimum size of 500k per trade for a fee of $25 per mio. This is pretty much standard for the industry, CX is CX. And getting it lower than $50 is possible you just have to be able to trade the size and then negotiate. If you are at $25-$30 with no size requirements, that is pretty good. The Ever Venomous VIPER
Anyway, with 500K as min amt required by Currenex brokers, with a charge of $25 per side, this amounts to $50 per round turn per 500K, way cheaper than the reatil brokers for EUR/USD at 3pip spread of 5lotsx3pips x $10=150 per round turn. Anyone disagree with me? Any complaints with Currenex with ManFinancial USA/SG/CA? Best Currenex provider in USA?
PIPe PIPer and Viper, I agree that $25 per million per side is great, but PFG wanted to charge us $50 per million per side ($100 round trip per million - 1 pip). This makes no sense, so I wonder how they're getting business (unless, of course, the guys that I spoke to were trying to pull a fast one on me).
Any thoughts on why CME/Reuters time table is so bloody slow? - other than deliberate. Compared to roll out of equity options electronic markets like ISE, this is a joke. Effectively, there only a handful of liquid currency pairs... Equity options, for example, have thousands of securities. more options in Q's than total currency pairs.
What's the rush for them? The big guys can currently trade on inner bank plarform, and small fish like us can wait.
Yep, deliberate - other than they could sweep and shatter all bucket MMs, period. For that reason alone, you would think they would do it. But the concept of a centralized spot currency and spot currency options market is not in the banks interest - which is why it has not happened to date. It would be like having a centralized high yield, distressed, and convertible bond market.
Miami, I read on another board from a former Reuters employee that Reuters is just really slow at rolling anything new out and that when the proposed date was mentioned, as 2006-2007 the opinion was that it would definitely be 2007 at the earliest. Depending on how the product is structured, there could still be a niche market for retail bucket shops, but nothing like the "good old days" going on right now.