I asked GHCO if, as an X_TRADER user, I qualify for the 3 month free upgrade to X_TRADER Pro. They told me TT's response was : "This is only applicable to the Eurex US platform which does not become available until February 1, 2004. Also, Eurex US has to be an actively traded product."
Do I have this right? Me....Mr. individual trader without paying a seat fee.....can get a platform direct from Eurex and start trading DAX for example with US dollars ...no exchange rate applies? No FCM needed at 0.30 cents a side? I am new to Eurex...Please esxcuse my ignorance...but someone had to ask this question. Michael B.
Ok, as promised, we asked TT, and we are still getting exact clarification. But it seems that the deal is for access to the Eurex USA market. Normally TT is $625.00 which includes one exchange. For other exchanges it is $250, $125...on up to all exchanges...or you can get X-Trader Pro for $1400 which includes all exchanges. What we were told from TT is that it would include the additional access charge of $250 or $125 for the additional exchange Eurex USA. So if you were a TT CBOT trader paying $625 per month then you would not have to pay $250 for the additional exchange Eurex USA to trade both the CBOT and the Eurex USA bond products. So...it is a $250 or $125 value to try the Eurex Product that mirror the products on the CBOT that you already trade. NOT, a free tt screen. As for the X-Trader Pro, the three month trial is for people who are trading the CBOT or Eurex Products, spreading or whatever and want to try the new Auto spreader ect. We offer 30 day trials now for X-Trader Pro to these type of customers already. So what this means is that Eurex is sponsoring with TT up to 90 day evaluations on the X-Trader Pro for trading Eurex Products on Eurex USA (when the products come out). This is just Velocity's interpretation of TT's new press release, and from conversations with TT sales people. THIS IS NOT AN EXACT OFFER FOR THE PRODUCT, AS WE ARE GOING TO WAIT UNTIL THE CEMENT DRIES ON THIS DEAL BEFORE QUOTING THINGS FROM TT AND EUREX. THIS IS JUST AN INTERPRETATION SO THAT YOU CAN GET AN IDEA OF WHAT IS GOING TO BE OFFERED BECAUSE THE PRESS RELEASE WAS SOMEWHAT UNCLEAR. Now for the shameless plug, Velocity offers TT for $500/month, trial periods, X-Trader Pro trial periods, TT simulator, and TT Simulator for X-Trader Pro. Velocity is committed to having the best platforms for active traders on Eurex and the CBOT. Will keep you posted on developments with TT and Eurex. It is going to get interesting between now and first quarter 2004. Jay
Chicago, Jersey City, Jan 21 2004 Satish S. Nandapurkar has been appointed Chief Executive Officer of U.S. Futures Exchange LLC (Eurex US), the new U.S.-based futures exchange currently seeking approval as a regulated U.S. exchange from the Commodity Futures Trading Commission (CFTC). Nandapurkar's previous experience includes senior management roles at Swiss Bank Corporation from 1991 to 1996, where he had served as Managing Director and Global Head of Exotic Options, as well as having served as Managing Director and Global Head of Foreign Exchange Options at Bank of America from 1997 to 1999, based in New York and Chicago. He joins from the Chicago Mercantile Exchange, where he has served as Managing Director and Head of Products and Services, responsible for sales and marketing, product management, and overseas offices. He had originally joined CME as Head of e-Business in 2000. Nandapurkar had entered the financial services industry as a floor trader for Chicago-based options trading firm O'Connor & Associates in 1988 after serving four years as an active duty U.S. Air Force officer, where he had been honorably discharged at the rank of Captain. He holds a Master's degree in Economics from Boston University and a Bachelor of Science in Computer Science and Engineering from MIT. Rudolf Ferscha, CEO of Eurex, said: "Satish will provide Eurex US with a wealth of experience in derivatives trading and risk management. He has an outstanding track record of senior positions in prime financial services firms and will be able to fully leverage his experience in developing the business and helping to shape the culture of Eurex US. Having spent most of his career in financial services as a customer of exchanges will further facilitate this - his full appreciation of the customer perspective will benefit Eurex US as well as our customers." As CEO, Nandapurkar will be appointed to the board of directors of Eurex US where he will join Michael McErlean who will serve as Sales Director. It was also announced today that Joseph J. Murphy, Chief Executive Officer of REFCO Global Futures, will join the Eurex US Board of Directors representing independent clearing firms. This follows last weekâs appointments of Kaushik I. Amin of Lehman Brothers Inc., Bradford S. Levy of Goldman, Sachs & Co. and Jeffrey D. Jennings of Morgan Stanley & Co to the Eurex US Board. Ferscha said: "We are delighted to have Joe Murphy lend a strong voice to independent clearing firms on the Eurex US Board. He brings yet another leading U.S. financial industry perspective to the new U.S. exchange." www.eurexus.com
Updated Eurex news. Appearently much to the dislike of the CBOT it's going to be serious trading that will shift to Eurex. Good article. Big players are chomping at the bit to move volume and open interest to the new exchange. They want to roll out of the March contracts at the Cbot and into new June contracts on Eurex http://www.reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=4211613 Bsulli
27 Jan 2004 18:59 (GMT) CHICAGO, Jan 27 (Reuters) - The U.S. Commodity Futures Trading Commission will hold an open meeting on Feb. 4 to consider Eurex's application to become a U.S. futures market, the regulator said on Tuesday. German-Swiss Eurex had set a Feb. 1 deadline several months ago to start trading futures and options on U.S. Treasury securities on its new U.S. exchange. The meeting will be held at CFTC's Washington headquarters at 10 a.m. EST (1500 GMT) that day, the agency said.
Technical and operational preparations for Eurex US launch completed Ferscha: We anticipate a positive vote by the Commission on February 4; Production software rolled out today Eurex, the world's largest derivatives exchange, announced on Tuesday it has adapted the launch schedule of its new U.S.-based futures exchange Eurex US to a February 8 launch, subject to Commodity Futures Trading Commission (CFTC) approval. Eurex US is currently seeking approval from the U.S. regulator CFTC, which announced earlier on Tuesday that it will consider Eurex US' application on February 4. "We have finalized preparations and the market is ready to start. We anticipate a positive vote by the Commission on February 4 which will allow for a timely implementation of our U.S. business venture," said Rudolf Ferscha, CEO of Eurex. According to Eurex the technical and operational launch preparations for Eurex US have been completed as planned. The production software is being rolled out today to customers for installation at member sites, completing technical member readiness for the exchange launch.
So much for those "BIG PLAYERS". Eurex is doing about 1-2% of the volume of the CBOT screens. Today I think it was about 1/2% across the board. By like 9 today it only had like 70 contracts traded to 130,000 something on the screen. Eurex doesn't have the money that people think and will be gone in 6 months like the rest of the exchanges that tried this move. The only significant volume it had was its first few days which was basically 100 lots matched up to pump volume and nobody making any big moves. Obviously if there were any BIG PLAYERS trading the Eurex it would have a hell of a lot more volume than that. The pits at the CBOT are crushing it and they are pretty empty.
I am suprised that the vol in Eurex is much much less than CBOT. Do you guys think it is just a little too early in the rollover of the contracts from the March to outer months to gauge the success of EurexUS? My take (very unsophisticated that is) is that if Eurex really wanted to compete and put intense pressure on CBOT they would have waited a little longer and offered more contracts that the CBOT is offering. By only offering the IR prods, CBOT can buy a lot of time due to the income stream from the ag products.
Forget about the Ags. Bottom line is every media outlet was touting the Eurex as the end of the Board. There are locals in the pits doing as much volume as all of Eurex (well maybe they are doing a little less). Even though there were rumors that Eurex was offering big traders...Kenyon...10 million and free trades for two years to be a market maker on Eurex. He matches the Eurex himself in terms of volume but he isn't leaving.