lets give this a story a new thread start as it really deserves it. where is the algo / hft volume creation. oh shit it does not exist. total volume collapse. eurex you officially have fucked it. welcome to the beginning of the end. also what happened to rsj updating their volume. they havent - reason - its down. end of business model. the eurex exchange is officially in decline. The interest rate derivatives segment achieved 33.3 million contracts (Jan 2011: 47.9 million). The Euro-Bund-Future reached 12.8 million contracts in January, the Euro-Bobl-Future 7.0 million contracts and the Euro-Schatz-Future 7.3 million contracts. The Euro BTP future totaled more than 222,000 contracts. http://www.eurexchange.com/about/press/press_777_en.html
Funny how the volumes dried up on eurex when they shun the human traders and welcome true liquidity destroying participants (HFT/Algo). Fucking good job. I'm glad people are voting with their feet and not putting up with the shit that eurex and their good pals at RSJ have been dishing out the last few years. Once the last of the real liquidity is gone then its goodnight,except for a few algos chasing a 10 lot here and there. Anyone want to know how to take a perfectly good business and run it into the ground? Employ eurex 's management team.
I think you'll find that while volumes are down at eurex/liffe and cme the eurex drop is more significant and the volume levels are at danger levels. Eurex have encouraged the HFT/Algo crowd and this is the net result. I would be interested to see some numbers for liffe YOY. The 10 YR Note action this week has been very bad,last night for about 2 hours you could have mistaken it for Euribor it was that slow. If CME don't get their act together sharpish they'll be next up. You can't argue with the volume,it's the most straight forward measure of a market,same as sales in any other enterprise.Once volume or sales drop it's time to take action by looking at causes for the problem.
" If CME don't get their act together, they'll be next up........" the boyz who run the merc all have stock options the price is on helium. think they give a crap.... stock jocks are toast. trade forex. s
CME stock sure as hell hasn't gotten a lift from the bernanke bubble. It's miles away from those highs it saw back in 2007.
Maybe less volume is a sign of increased market efficiency. Before the market was less efficient, so it took longer and more trades to get to the "correct" price.
Excellent point! Just as floor traders were dragged into early retirement (or other jobs) a few years ago, so it goes for many point-and-click traders, and even some HFT's. Although there are no doubt HFT "abuses" in various parts of the market, the effect of such "abuses" is far less deleterious to the (typical) previously successful trader than is increased efficiency brought on by electronic, open markets. There's probably no wizard behind the curtain collecting all those "lost" profits -- the profits simply don't exist anymore. Market efficiency makes them unnecessary. This efficiency is being returned to the economy in the form of reduced transaction costs, but real growth belongs to "emerging" economies these days, so the added efficiency won't be particularly visible in the "first world".
there should be same level of volume weighted stupid traders. And if so, same amount of contracts traded to bring price back. Looks like volume weighted stupid traders ... must be less of them and thats why volume less. Unlikely that markets got 'smarter' just after '08 crash when volume dropped. so, must be harder making money on average as there is less in pool. not only banks benefited from funny money.