Actually, as someone who was on the Liffe floor and who has traded Eurex/DTB for 8 years, let me tell you that Eurex had the Bund listed for about 5 years before it took the business from Liffe. They had the liquidity in the Bobl and Schatz but had repeated failed to steel the bund. It changed somewhat after Liiffe very unsuccessfully tried to launch the Bobl. Chris
Chris, You are quite correct. DTB did have the Bund options and futures and the volume was low. It wasn't until the DTB (I forgot if they had actually become Eurex by then) gave out the free screens and took out the full page ad in the FT that the momentum started to drastically swing in their favor. One can look at Eurex US and see a similar, albeit with a smaller timeframe, pattern emerge. Eurex US came out quietly and didn't impress anybody. Now, just as they did in the past, they set up a marketing program and got people talking and so far have made great strides. The journey will be long and as I have said before, I don't really care who wins. As long as there are two exchanges competing on price, service, and technology; we will all win. God bless the world! Can I get an "Amen"?
The mad thing is the ad in the FT was proposing a cooperation between LIFFE and Eurex. Liffe's attitude was 'yeah right, we are the biggest here and we will stay that way.' How they must wish they could go back in time. Also, you may do well to remember that no exchange has every taken a contract of another exchange when they are both traded simularly (open outcry or electronic). Eurex and Matif tried to take the Euribor off Liffe, both failed, ended up with Matif and the new partners buying Liffe. During that battle Eurex built up some days of pretty good volume, but at the end of the day the open interest decides where the business will stay. I would say the volume on Eurex US at the moment is made up of a lot of arbing. I don't think the fee's on CBOT are excessive anyway, it is down to the broker. I pay about 65 cents round turn, fee's and commissions. Against the value of a tick, CBOT actually works out cheaper to trade than Eurex for me. Also to note is all Eurex care about is volume and therefore fee's, they have been reluctant to do anything about the flipper episode since it increased volume and in turn revenue. CBOT are owned by the trading community and i believe they will act in the interest of the trading community and not their shareholders. As far as i am concerned long live CBOT. Chris
From the Eurex website: Aug 02 2004 Eurex US, the fully-electronic U.S. futures and options exchange, today reported its best monthly volume since the launch of the exchange in February. In the month of July, trading volume on Eurex US rose more than 1000 percent to a total of 673,180 contracts, up from 58,134 contracts in June. Daily average volume traded on the exchange in July rose to 32,056 contracts per day, up from 2,768 contracts in June. Open interest on Eurex US more than tripled in July, reaching a new record of over 58,000 contracts, up from 17,895 on June 30.
Can JoHa pick them or what!?!? Come on guys, get in there and trade more. Support Eurex US. Support SSF on both One and nqlx. suport eurodollars on liffe and globex. maybe one day, the exchanges will make them fungible (ha!!!). Competition is good! Yippy ki aye mother f#ckers!!!!
I prefer the judgement of a 55-year old trader to that of a 25-year old mathematician alan greenspan...
Do ya think the 100% fee waivor had any impact? As long as they're not charging, I'll send my orders their way. Somewhere along the line Eurex will have to charge fees again and as long as the CBOT matches them, I'll be routing to the good ole US of A. Better country, better platform.
Think the fee's might be free for at least a year, tho if the CBOT can match them that would be great! Eurex US fees are only 20c per side anyway. Besides, Eurex "US" is a US company with US employee's and registered as a US exchange so whichever way you route your still "keeping it in the family" in true US of A redneck stylee.
chuckk-y: The cbot is fueled by the Liffe Connect platform, based in the UK so you are actually sending a portion of your money outside of the US. MartinD: I think its 1 second netting. either way, it still is crapola. Long live eCBOT AND Eurex US. God bless the USA and every other country (unless there are radical muslims living there then f#ck them). Can I get an amen?