EURIBOR- Left to the algo's

Is it just me or is the Euribor a shocking contract now, full of bids and offers that disappear at the slightest chance of trading. Ive traded it for 20 years (floor /euromark and screen) and have never seen less opportunities than of late.This preferential algo treatment by LIFFE has ruined it.

 

LIFFE is a piece of shit exchange who basically fucked themselves by being so pro algo.

Trade CME eurodollars

 

forgive my ignorance but what does 'pro algo' actually mean? i've been trading euribor for nearly a year (since sterling went half ticks) and have always thought it to be more 'spoofy' i.e. bid and offers never really there, i suppose if you start with that mindset it cant disappoint but i understand how frustrating it is - trying to trade sterling half ticks was even worse and why i switched...thank god sterling's gone back to full ticks this week - a vast improvement and hopefully not too late to save the contract from dying completely

 

'Pro Algo' means favoring these models through financial incentives.

 

Ya you see some of that "spoofing" in the eurodollars as well.....like you might see 15-20k bid/offer in some of the 3month spreads but thats when you just have to check the yield curve and be on the right side of the market that favors what the yield curve is doing. Because I would imagine they are only showing that much size to get their contracts filled on the opposite side of the market because otherwise there would be no reason for them to show that much size without really wanting it.

I have never traded euribor but hopefully I will be trading it by this summer......I think it would be a blast to play in the market with the most manipulative games out there!

 

disappear at the slightest chance = noise, filter them out.

 

All of the STIRs have been much more slippery as of lately. I really wish I had the capital so once in a while I could take out these guys. I really hate fake size.

It isn't too hard to sniff it out, but it's just annoying. I'm going to start in Euribor in the next month or two also. Hopefully I don't get owned.

 

A price that is bid up with "fake size" is probably not a good sale, regardless of how well capitalized you are or how many there are to sell.

 

I disagree. Just this morning I saw a 20,000 lot offer that had no right being there. It is currently 2 ticks above that current price with a sum of bids greater than 20,000. Needless to say I was long 200, though I would had been quite happy if I could had been long 20,000