Silly question. It is because that the cost makes it impossible to make bigger profit. When the reward/risk is not acceptable, we, traders (not gamblers), quit and find other funs to do..
Don't worry every market organisers have the same purpose. US is still late compared to Europe but they will probably do the same kind of things one day or another. Europe went electronic entirely and many floor traders just lost their job and have been washed because they couldn't cope with the new market which has become much more illiquid on scalp level. Options has PDT, I bet they will do the same thing for futures and that they will ask for 50000$ to 100000$ to just open an account.
My plan called for me to get some exposure to European futures markets this spring. I would be likely to make many order changes. Can someone suggest Euro market altenatives avlb through IB without the fee? Geo.
Def, I wouldn't be too sure that I am wrong, but you may have a different contact at Eurex than me. I asked a point blank question to the ASP contact person at Eurex: What are these fees aimed at? He told me flat out that it is aimed at Data Centers and trading firms that tailor to a great deal of orders through Automated Trading Systems. I think that ones I mentioned would fall into that category. I have quite a bit of experience trading Eurex over the last 9 years or so as both an individual and a Systems trader through CRT. In 1999, we were experimenting with our AutoQuoting systems for Dax Options and the next thing I know we get an invoice for 250,000 Deutch marks. Eurex was very good about it and they reduced it to a very low figure, but their aim is to make sure that firms with ATS can not blast the system with an ubelievable amount of orders. They are most concerned about stability and they always have been. I tried to attach the full explanation of the Fees from Eurex. but it was too large to post. If anyone is interested in seeing it, PM me and I'll sent it via email. FFastTrade has no plans of implementing a fee to our clients for orders over the 5 to 1 ratio unless they are using an Automated Trading System. Our breakdown of traders allows us to avoid these fees at this time. Riskless
The fees you are talking about for market makers have been around for a long time. As I understand, there is a new class of fees that were implemented for non-market makers.
Yeah - GL, TT, and ECCOWARE have autospreaders that prop firms all over the US and Europe have been using. Eurex is naturally trying to manage the flow of BS arb orders coming in at the most inopportune times - like at about 08:31 EST US on the first Friday of every month.
1. what's cost ratio of this particular fee for the market makers? 2. do we get the advantages for market maker by paying this fee? Thanks for enlightening us.
I am not just talking about Market Maker fees, because the fee structure has always been aimed at Automated Trading systems. I can send the entire PDF explaining the NEW fees if you want it. I couldn't post it though, because it is too big. They are basically the same as the fees before, except they are more widely spread. These fees are designed for the retail ATS user. He even mentioned TT Spreader in the conversation!