Eurex to launch SENSEX futures & options

Discussion in 'Index Futures' started by doublechin, Jul 14, 2010.

  1. Dogfish

    Dogfish

    We had more than five MMs who said that they would be interested and (more
    or less) ready to start the product.
    For various different reasons almost all of them figured out difficulties
    and delays when the product was really launched.
    This is definitely not optimal, but also not the first time we have this
    problems with newly launched products.

    We know that a number of people (like you mentioned as well) are interested
    in this product, but we also have to
    admit that it is getting harder to have the Market Makers there on day one,
    especially if the product is a bit more complicated.
    In this case, a lot of interest comes from Asia, but often the Asian
    branches can´t quote directly from there, but have to go through
    the European entities, which needs some combined efforts

    To encourage the Market Makers to put everything in place for this, we will
    come up with an additional incentive scheme
    to be announced later this week. So far we have just one MM in the Futures,
    who quotes 1% wide and waits for others to get in.

    If you want to trade this product in general, I would like to encourage you
    to put in some orders, because then the Market Makers
    will also see that there is potential flow.

    Best regards
    Ralf Huesmann

    Eurex Product Development
    Neue Börsenstr. 1
    60487 Frankfurt
     
    #11     Oct 13, 2010
  2. Is IB offering this product? I can put order if IB supports this. Thanks
     
    #12     Oct 13, 2010
  3. Why don't you tell him the real reason why this will fail miserably?

    Nobody wants to trade this because once you've invested time,effort and money some helpful guy will develop an algo to wipe out the human traders,after they've created interest and got the thing going of course.Eurex clearly thinks this is the way to take the business forward.The market will then become a joke like the Bobl.

    All exchanges that launch new products waste their time,LIFFE's Eurodollar,Eurex's Gold and BTP and lets not talk about the giant fiasco that was Eurex US.

    The reason that links all these failings together is that the algo market maker, makes it impossible fo a contract to find it's feet.

    Anyone else see the liquidity providing market makers last night in the Bund - I didn't.

    Think about how much you would lose if things got tasty in the Sensex.

    Funny thing is I couldn't give a toss about this contract,but it just pisses me off when they try and con human traders into helping them only to tell them to fuck off when the humans need the exchange to do their job and regulate the thing properly.
     
    #13     Oct 13, 2010
  4. Dogfish

    Dogfish

    Yeah some valid points but I'm still surprised they can't even get it knocking out a few lots especially against the nifty on sgx. Even a backwater exchange like the DGCX here in Dubai has managed to get electronic gold futures and more recently the rupee/usd launched and trading, the latter just passing 5000 lots a day now which is pretty decent compared to things like BTP or Buxl. I just thought Eurex could at least match that on FSEN. Obviously I was wrong...
     
    #14     Oct 13, 2010
  5. Not familiar at all with how those contracts trade on DGCX.

    Are they dominated by algo market makers? or do the Middle Easterners go with a more traditional method?

    IMO most people who can provide proper liquidity are a tired of having their trousers pulled down by the likes of Eurex.
     
    #15     Oct 14, 2010
  6. Dogfish

    Dogfish

    They're still throwing money at it but not enough really

    <B>SENSEX Derivatives: Additional Incentives for Market-Making</b>

    The Management Boards of the Eurex Exchanges decided to offer additional incentives for Market Makers in
    futures and options on the Indian SENSEX Index. As already announced in Eurex circular 135/10, no fees at
    all will incur for trading of SENSEX derivatives between October 4, 2010 and March 31, 2011. Furthermore,
    for the time being Market Makers will receive with immediate effect up to and including December 31, 2010:

    1. upon compliance with DMM for SENSEX Futures as specified in Eurex circular 135/10 (scheme A or B),
    whereby a quotation size of 20 contracts will suffice:
    · A lump sum of USD 1,000 per Member and month (limited to the best five Market Makers, calculated
    on the basis of the order book turnover in SENSEX Futures contracts)
    · Besides, up to USD 5,000 per month will be distributed to the best five Market Makers (calculated on
    the basis of the order book turnover) in SENXEX Futures contracts, whereby the pro rata share in the
    order book turnover will define the percentage of the individual payment. Maximum payment per
    Member will amount to USD 0.20 per contract traded in the order book.

    2. upon compliance of PMM for SENSEX Options as specified in Eurex circular 135/10, whereby a quotation
    size of 20 contracts will suffice:
    · A lump sum of USD 750 per Member and month (limited to the best five Market Makers, calculated
    on the basis of the order book turnover in SENSEX Options)
    · Besides, up to USD 3,000 per month will be distributed to the best five Market Makers (calculated on
    the basis of the order book turnover) in SENSEX Options, whereby the pro rata share in the order
    book turnover will define the individual percentage of the payment. Maximum payment per Member
    will amount to USD 0.20 per contract traded in the order book.
    Eurex will verify the criteria for compliance of Market-Making schemes on a monthly basis and, if appropriate,
    adjust them.

    For any questions you may have or should you have interest in Market-Making in these products please contact
    Ralf Huesmann at tel. +49-69-211-1 54 43 or e-mail: ralf.huesmann@eurexchange.com.
     
    #16     Dec 1, 2010
  7. Dogfish

    Dogfish

    Eurex contacted me this morning saying the market makers are now in see the attachment from this morning's order book
     
    #17     May 9, 2011
  8. esmjb

    esmjb

    what front end do you use?
     
    #18     May 9, 2011
  9. Dogfish

    Dogfish

    That picture was what eurex sent me so no idea but can see the market makers on CQG just bring up fsen then click order and it brings up the ladder. Can't get it on my tt at present as the marex clearer haven't loaded the feed.
     
    #19     May 10, 2011
  10. Dogfish

    Dogfish

    Well it traded 1 lot! More money being thrown at it

    <B>SENSEX Derivatives: Additional Incentives for Market-Making</B>
    The Management Boards of the Eurex Exchanges decided to offer additional incentives for Market Makers in
    futures on the Indian SENSEX Index. As already announced in Eurex circular 135/10, from April 1, to
    December 31, 2011, 30 percent of transaction revenues is paid by means of a revenue sharing programme to
    the complying Designated Market Makers.
    Furthermore, for the time being, effective immediately up to and including July 31, 2011, three Market Maker
    incentive schemes are offered. Two of which (A1 and A2) apply to the time period the Indian cash market is
    opened, one (B1) is valid during standard Eurex trading hours:
    A1 – Quotation of 90 percent during the time the Indian cash market and Eurex are
    opened (8:00 MESZ until 12:00 MESZ), with a quotation size of 50 contracts and an
    average spread of 20 basis points. Members who fulfill the A1 scheme will receive a lump
    sum of USD 4,000 per month.
    A2 – Quotation of 90 percent during the time when the Indian cash market and Eurex are
    opened (8:00 MESZ until 12:00 MESZ), with a quotation size of 20 contracts and an
    average spread of 25 basis points. Members who fulfill the A2 scheme will receive a lump
    sum of USD 2,000 per month.
    B1 – Quotation of 80 percent during the time between 8:00 MESZ and 17:30 MESZ, with a
    quotation size of 20 contracts and an average spread of 75 basis points. Members who
    fulfill the B1 scheme will receive a lump sum of USD 2,000 per month.
    The total number of Market Makers who will be able to benefit from one of the three schemes is
    limited to five. If more than five Market Makers fulfil one of the three schemes, only the five ones
    with the highest order book turnover will receive the named incentives.
    Eurex will verify the criteria for compliance of Market-Making schemes on a monthly basis and, if appropriate,
    adjust them.
    For any questions you may have or should you have interest in Market-Making in these products please
    contact Ralf Huesmann at tel. +49-69-211-1 54 43
    <B>May 13, 2011</B>
     
    #20     May 13, 2011