Oh I see, Des didn't understand what I meant when I typed "everything is divided by ten". That includes commissions. EVERTHING IS DIVIDED BY TEN. So he got all pouty on misunderstanding what I typed. Oh well, his loss. (By 1/10th)
I have other concer CME appears to be positioning these weenies for 1) exposure to the equity indexes versus ETFs 2) spreading opps 3) ability for customer to withstand volatile periods. That said, they are completely fungible with their parent contracts. But the real fun is that they will allow short and long positions to be held simultaneously (ES/MES, NQ/MNQ, etc), but that will come only with relatively high cost. The ability to hold neutral, and the fungibility probably lends itself into the existing option products in some way, at least I would think so. But that's not my game. I do think these weenies will be successful. Hell, I can see myself holding a couple for overnight or plain ol directional swings. Even a limit move wouldn't do massive damage to a guy like me! But don't get me wrong... I don't like these products longer term! If you can spell CME and you have $50, you, yes you, can become a futures trader! What can possibly go wrong? And what kind of changes to futures trading comes after?
At Amp Futures the commission divisor was 8.5 and not 10. So someone is skimming a bit extra along the way
Sure, but they cost no less to clear. It goes to show what they could be charging for fees on the bigs.
That is understood. It was understood when these products were first announced that there would be a "premium" of sorts on the commies. But in a couple weeks we'll have the true skinny.
'They cost no less to clear', CME will use that as the reason to jack up the commissions should these ever take off. Rather than do the opposite and reduce the commissions on the Minis.
This is going to impact the SPY. 1256 treatment. A single PNL figure on your 1099. I'd bet that SPY avg daily volume is going to drop 5% once these get rolling.