http://ir.theice.com/releasedetail.cfm?ReleaseID=338878 I wonder what the liquidity is going to be like
Probably not going to work well...CME FX is the king just like ER2 was. Don't trade the ER2 but I am thinking the ICE version isn't great. Russell must be regretting the change and the lost revenue.
The liquidity on CME isn't so great for FX futures anyway. Particularly as they are supposed to be a 24 hour market, but only have reasonable liquidity 10 hours a day. It's interesting that these new FX futures offered by ICE seem aimed at a different market - either larger players or shorter term scalpers that is, with each contract being worth 1 million rather than 125,000. The transaction costs for one ICE contract being similar to one CME contract, makes ICE look bloody cheap for scalping - of course only if the spreads and liquidity are good enough.
that's true, as an european trader I was looking for a contract which I can trade in the morning (european time) but there are very few days with enough liquidity in the morning (6E) and I ended up trading it the same hours like NQ, ES... One million seems big... I'm fine with 125000
The regular-sized ICE FX futures are fairly illiquid. Only the DX has any action, and even then, about 5k contracts on a busy day. These million FX futures are sort of reminiscent of the Big Dow contract that CBOT launched some time ago (and CME MarketSpace for that matter). A good idea in theory, but little/no interest after launch.