Hmm, are you sure it sucks liquidity out? Even if it does, don't you reckon the way to fix it is to bring in 1/2 cent increments, not constrain traders with regulation? Dunno, you might be right.. but regulators such as Bafin can be a bit trigger-happy.
As far as I know they thought about introducing 0,5 cent increments, but that could narrow the spread by 50 % and then making it harder for market maker/ dealers to provide profitably liquidity which would widen the spread again.
nq min tick size has been cut in half yet vola is still the same. it doesn't always necessarly apply.
Slightly off topic question - hope you don't mind : what are the best available fees for trading the BUND/BOBL/SCHATZ and the DAX presently- rd. turn including exchange fees - and where to get?? (below IB) Decent volume (not Rotter like though). Thanks.
Take a look for the unbundeled commissions depending on you volume: http://www.interactivebrokers.com/en/accounts/fees/commissionFutures-FOPs.php?ib_entity=llc If you tade high volume you negotiate your commssions.
The Traders Clearing Alliance based at Fortis on Bishopsgate in London are the lowest Eurex fee's anywhere i know of. â¬0.48c roundturn including exchange fee's (24c a side) for financials. Its a fixed rate too, no sliding scale for volume, if you do 10k or 100k RT's a month, same rate.
Thanks - Arbi - very friendly, indeed. Volume ok. Their site and/or phone no. would be appreciated as well - possibly via PM. Thanks again, Charly