Eurex to enhance Bobl contract Tick size of Bobl future to be increased from half to full tick 21 Apr 2009 As of 11 May 2009, the leading derivatives exchange Eurex will increase the minimum price change (tick size) for futures based on medium-term (five years) debt instrument issued by the Federal Republic of Germany (Euro-BOBL-Future) from 0.005 to 0.01 percent. The tick size of the BOBL option will remain unchanged at 0.005 percent. Peter Reitz, member of the Eurex Executive Board, explained: âOur decision is based on an extensive consultation process with our customers. The full tick will provide market makers, such as tick traders and calendar spread specialists, with a better risk/reward profile and thus encourage quoting. This step will improve overall order book liquidity.â http://www.eurexchange.com/about/press/press_626_en.html
What I just don't get is how they are still missing the real cause of the problem here. These markets grew consistently for years until this ridiculous algo/program nonsense arrived.Since then we have seen a marked deterioration in market consistency and quality. A guy in our office suggested charging these algo funds for volume inputed,not messages as is done now but volume, so if you want to input 1m lots a day in the Euribor but execute 25k then you pay after a threshold for the volume pulled,that would bring their little game to an end once they get a few of those bills. Just a thought
thank fucking god...not gonna lie i can't even stand bund in my head it goes, "i'm right there just trade it...!!!" the day i go over to dax, we have the two most volatile, 1 directional days in months. i would of got run over in any of these products, stoxx,bund,bobl today, but particularly fixed income, its just ridiculous i don't understand what correlation exists between bund/bobl, its just so delayed unlike snp/stoxx or dax/stoxx, dax blips, stoxx 1 ticks the low theres a way to play the momentum (like fade the dax since paying up in stoxx because of a 1 tick low is just hard to swallow) unlike bund, ripping 10 ticks hi, and bobl...just sitting there at the hi for 30 min the other day during eurex rth i don't know how anyone trades it outright...i just know folks spreading it.
Useless Eurex "following extensive consultations with market participants" it's not technical, some firm started whining and eurex buckled, can't see it happening any time soon...