"Greater liquidity and depth is needed to achieve volume growth." I think that you have just contradicted yourself swingtrader. You say the bots create the depth, then admit that they destroyed it by stopping the locals from working orders. Eurex, due to its nepostistic treatment of algo-traders has reduced volume, liquidity and efficiency. You need to look after all participants to create the best market. Look what happened to the Bobl. The reduced volume shows that the funds and algos are now leaving the Eurex market. How can you say that the algo/quant volume is ever increasing when clearly it is declining? Eurex is " fucked in the long run" What are they going to do? Offer US treasuries? BTW -did anyone notice the new big aggressive algo-trader that entered the tnote sometime on Monday? There I was working a 5 1/2 bid and in the blink of an eye it was offered on 8000. It reminds me in character of the algos that were in the Eurex markets when I traded them up until last year. It seems to be highly correlated to the stock index and quite primitive in nature. Any comments?
I'm not moaning. You adapt or die in this business. I decided that after 10 years trading eurex, I would switch back to cbot. I think it's a shame what Eurex did to their bond markets and I took my business elsewhere. You are not advancing your argument that volumes will be significantly higher in years to come.
The volumes will be higher due to the increasing number of funds that will be created, as we "speak" the quants are testing new theories etc... Out of interest why switch back to CBOT?CBOT has just as many Algos/Black boxes plugged in as EUREX-or is this not the case? Thanks
All I can see are the funds decreasing their business and pulling out of the market. Of course new funds will enter but I see a net decline in volumes. Until recently I might have agreed with you. I thought the bund would be trading 5m contracts a day within the next few years. & financial crises create greater opportunities > more volume, but all I see now is risk management tightening the reins, and the wealth to create these new funds evaporating. It was a complex decision to switch back to cbot but it has proved to be the right one for me. Sure there are many boxes plugged into the market, but I think the US futures are more efficient because they follow a solid cash market. In Europe you don't have that so the bunds can be bullied,and then you are playing mind games rather than "trading". Just my opinion.