Anybody heard about the new futures exchange hoping to challenge the CME's monopoly on UST-futures? Apparently the likes of Citadel, Getco and Peak6 are backing the new exchange which should make it popular with high volume/frequency traders. http://www.reuters.com/article/bankingfinancial-SP/idUSN2129659820071224
I'm looking forward to it. The liquidity in the treasuries has been dismal for the past month or so. CME will probably slash their rates to fend them off though.
Good point, I think the CME slashed fees in 2004 to fend off the Eurex threat - but then subsequently increased them once the threat was gone. It'll be interesting to see how this unfolds.
With the fees slashed by the CBOT the Eurex was not able to compete with more than the 7% on the US Tsy mkts. What should Citadel & C make on their business plan to gain better luck than Eurex?