Discussion in 'Index Futures' started by futuretrade, Mar 27, 2003.
There is a big difference between the European Arb and the CME Arb. The European Arb was created by two competing exchanges. This arb is created by One exchange that supports both complexes. The CME will do whatever they can to keep the floor in place, while LIFFE locals wewre not as well capitalised as the Chicago Locals. LIFFE was run by the Institutions that wanted cheaper execution, while Chicago is run by well capitalised Locals that want to continue to make a geat living.
The Market will eventually decide, but until then, Political influence will keep the ARB in place. Currently is more expensive to trade Globex than it is to trade in the Pit. Eurex was far less expensive than LIFFE so it won hands down in a matter of weeks.
Time will tell!
The answer is yes, a close friend of mine makes a killing arbing the S&P.
traders are still making a good living
doing arb in the bonds and notes pits vs the screen
guess I should ask some of my chicago contacts
I was thinking of trying this in the mini gold vs the comex gold
but the volume and range has dried up in recently
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