Eurex And Liffe Fixed Income Futures Volumes Plunges Again

I would imagine that if they merged they would use connect,after all they would own it.I don't think that currently Eurex can handle the spreads .

 

yep interesting developments.

they are obviously under pressure from shareholders to get a deal done at all costs.

exchange workers wont be needed so some definite redundancies there.

i wonder what would happen with margin requirements.

i run some cross exchange positions and margin is 5 times higher than a year ago.

with liffe and eurex under the same unbrella it should not cost so much theoretically.

then again knowing the exchanges they will probably increase it.

 

No doubt there will be a lot of redundancies,about 80% I would imagine although they could sack 80% right now and the service quality wouldn't change much.

Margin would fluctuate with market conditions,exchange fees would drop for sure.

If you are running cross exchange spreads,I'm guessing Eurex/LIFFE you are now paying double,If it were 1 exchange then you would be able to say have on Schatz/Euribor and if they were at the correct exchange pre-decided ratios then you would recieve a discount,they did this at CBOT for 2,5 & 10YR spreads

 

Heard a nasty rumour this morning.

I'm not sure if anyone remembers a few years back when LIFFE had a huge algo fund called RSJ decimating locals left and right in short sterling by basically waiting until they were all bid/offered together then joining the bid/offer in 15-30K to gain the lion's share of any incoming orders.

Well apparently they are now after watching them kill off their liquidity providing locals paying RSJ to make liquidity in the Sterling/Euribor.

What a joke!

 

would not surprise me.

thats a typical liffe response to a disastrous situation for them.

they dont understand.

that an algo market maker simply discourages business.

assholes.

 

these are the people you are talking about.

its not trading its a technology war.

deep pockets.

market making agreements that provide no liquidity just kill everybody.

its a sham.


RSJ Invest increased its Q2 volume of securities trading by 23.7 %

RSJ Invest – press release, 20 July 2008



RSJ Invest increased its quarter-on-quarter securities trading volume in Q2 2008 by 23.7%. The company’s securities trading volume in the first half of 2008 totalled CZK 348,064 billion. The majority of trading comprised financial derivatives transactions on markets in the USA, Europe, Australia, Japan, Canada and Asia. Developing markets are the key point of interest for share investment, primarily in Central and Eastern Europe and the former Soviet republics.

With its new RSJ TurboEquities fund, RSJ Invest plans to capitalize on the success of its interest futures trading. This hedge fund invests in futures contracts on share indexes traded on derivatives exchanges. “The fund represents a crystal clear form of long-term share investment accelerated by derivatives instruments”, explains RSJ Invest Board of Directors Chairman Libor Winkler. The RSJ TurboEquities fund meets the needs of qualified investors who trust in the long-term growth of the world’s most mature share markets. Use of the leverage effect should increase fund returns. The risk/return ratio is optimised for these investments.

RSJ Invest was founded in Plzeò, where its administrative and settlement headquarters are based. Its administrative offices are moving to Prague this month, where the company’s Trading Desk, Portfolio Management and Analysis Department are currently located. The Company also has technology bases in London and Chicago.




http://www.rsj.cz/rsj-invest-trading-volume-growth-401152418.html



http://www.bobsguide.com/guide/news...ATENCY_TRADING_BETWEEN_PRAGUE_AND_LONDON.html

 

Libor Winkler thats got to be made up hasnt it.

I am glad to see their volumes going up as total exchange volumes go down. In the same way the US banks were blind to see how thier involvment in the housing market lead to this global mess, so in the same way these 'boffins' will learn that thier ever increasing involvment in a decreasing volume market will lead to thier own demise.

 

Someone here somewhere has got an article where they confirm that their sole intention was to backride the locals then bury them,now they've buried most of them and fucked the interest rate segment up they are moving on to equities it seems.

I agree with TsunTzu here that this will lead to big trouble for them,firstly I can't see too many people wanting to be involved with a hedge fund these days,secondly their system in the STIR's will not work work in the equities.

Gotta give LIFFE a round of applause though,change the algorithm to suit a hedge fund and destroy the locals,then realise that they've put all the eggs in one basket,shit themselves change it to a time based system,the hedge fund fucks off,but most of the locals have gone elsewhere,change it to 1/2 tick,the measly amount of locals left can't trade it,pay RSJ to market make to wipe out the last few left in there.

What a bunch of mugs.

 

you took the words right out of my mouth.

it amounts to the worse decision ever to save a failing business.

send in RSJ as a market maker and liquidity provider.

thats like sending in the us marines to break up an anti war demo.

lets wait for the volume decrease for december year on year.

that will be a laugh.