That thesis had been invalidated. Electronic trading did NOT drive away business in the stock indices and interest rate complexes, indeed it enhanced it!
invalidated? pshaw. interest rate futures are fungible. stock indices are hedged off or by the stock market which, last time I checked, was open outcry. consumable commodities are not as fungible as mathematical constructs -- vaporous theoretical creatures to begin with. real things require real people. and you can take that to the bank. apc
Thanks for the Brent Crude info. I was totally unaware that IB had that contract -- not that that says much. Do many people spread the Brent contract against the QM (WTI I think)?
The QM contract is horrible on IB. The spreads are big and you will only get a fill if someone in the pits can fill your order and get out of it at a profit instantly. I don't know much about the IPE contact but I would think that it would be better as it is from an all-electronic exchange. If you want to spread I would look at a brent calendar spread.
hey ...lets not knock IB here ... QM book should be the same whatever broker you are using ... and yes ... the spread and liquidity and fills will not be as good as the open outcry pit but the size is 1/2 and the arbs down there in the pit need to make a living to cover their seat leases ! -The QM contract is horrible on IB. The spreads are big and you will only get a fill if someone in the pits can fill your order and get out of it at a profit instantly.-
I didn't mean to knock IB but I really caution anyone trying to trade QM with IB or any other broker. It is just not a good contract. I am knocking NYMEX. They will never accomplish anything great with half measures like that.
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[ Sep 21, 2005 ] 20 Market Makers Signed up to Participate in Eurex FX Market Nandapurkar: significant backing from market makers, strong industry support Eurex, the world's largest derivatives exchange, today announced that a total of 20 market makers have signed on to provide liquidity when trading commences in foreign exchange (FX) futures on September 23, 2005, on Eurex US. An additional eight firms have agreed to act as Early Volume Adopters (EVAs), providing a consistent amount of volume each day. Eurex US market makers include global banks and proprietary trading firms with significant experience providing streaming two-way currency prices in foreign exchange markets. "We have established significant backing from market makers and we are delighted that this emerging asset class is already receiving such strong industry support," said Satish Nandapurkar, CEO of Eurex US. "These firms recognize that there is an opportunity to trade exchange-traded FX futures on a liquid and transparent market at a cost comparable to the OTC market." Eurex's move into FX futures marks the extension of the exchange's global liquidity network into a new asset class. Initially, contracts in the six major USD currency pairs (Euro, Australian Dollar, British Pound (Sterling), Yen, Swiss Franc, Canadian Dollar) and four cross currency pairs (Euro/Yen, Sterling/Yen, Euro/Swiss, Euro/Sterling) will be offered. Contracts are listed on Eurex US, leveraging the exchangeâs reliable 23-hour trading platform, global access points, and liquid, transparent market with a highly effective distribution network. In addition to open and equal access, anonymity and low transaction fees, traders will also benefit from the U.S. regulatory environment and 60/40 tax treatment. Contracts will be cleared by The Clearing Corporation (CCorp).