TO: All Firm Personnel Service Bureau Representatives Independent Software Vendors FROM: Clearing House Department ADVISORY #: 06-55 DATE: MARCH 8, 2006 SUBJECT: Change to Minimum Tick Size for CME NASDAQ-100® and CME E-Mini® NASDAQ-100 FuturesâEFFECTIVE Sunday, April 2, 2006 for Trade Date Monday, April 3, 2006 Effective Sunday, April 2, 2006 for Trade Date Monday, April 3, 2006, the minimum tick size for the CME Nasdaq-100 and CME E-mini NASDAQ-100 futures will be reduced to 0.25, as summarized below: Futures Contract Current Minimum USD New Minimum USD CME NASDAQ-100 0.50 $50 0.25 $25 CME E-mini NASDAQ-100 0.50 $10 0.25 $5 If you have any questions regarding this notice, please contact Laura Sutor at 312.648.5480, email lsutor@cme.com, or Lisa Amato at 312.338.2654, email lamato@cme.com. Thank you.
Thats ok. Your prior post summarized it well. Thanks. I always wished the CME would go to a quarter point increment with a 50x multiplier in NQ and dimes in ES at 100x. Maybe down the road. I guess the publicly traded CME doesn't want bigger specs if that means fewer contracts, i.e. fees.
isn't he on the big computer?/ the Commodore 64 sorry Pabst I couldn't stand it...I know of you here in ET and many folks speak highly of you...I am just afraid to reply to your most informative posts as you know your shit... have a nice weekend..
TO: All Firm Personnel Service Bureau Representatives Independent Software Vendors FROM: Clearing House Department ADVISORY #: 06-55 DATE: MARCH 8, 2006 SUBJECT: Change to Minimum Tick Size for CME NASDAQ-100® and CME E-Mini® NASDAQ-100 FuturesâEFFECTIVE Sunday, April 2, 2006 for Trade Date Monday, April 3, 2006 Effective Sunday, April 2, 2006 for Trade Date Monday, April 3, 2006, the minimum tick size for the CME Nasdaq-100 and CME E-mini NASDAQ-100 futures will be reduced to 0.25, as summarized below: Futures Contract Current Minimum USD New Minimum USD CME NASDAQ-100 0.50 $50 0.25 $25 CME E-mini NASDAQ-100 0.50 $10 0.25 $5 If you have any questions regarding this notice, please contact Laura Sutor at 312.648.5480, email lsutor@cme.com, or Lisa Amato at 312.338.2654, email lamato@cme.com. Thank you.
I think this is a good move for the CME. And, quite frankly, it should have been made a long time ago. If you think about it, day traders are trying to pick up ticks. A few ticks here, a few ticks there, lose a few here etc... NQ's problem has always been a lack of ticks. You could look at it this way: the NQ contract has a ATR(10) of about 25 points. At two ticks per point, that's about 50 ticks per day. The ES has a ATR(10) of about 13 points which is also about 50 ticks per day, but the ES ticks are worth $2.50 more than the NQ with much better liquidity. The contract I feel has them both beat is the YM. The YM has a ATR(10) of 95. A one point per tick, that equals 95 ticks per day; almost double that of the NQ or ES. Even thought the ticks are only worth $5.00, day traders have more opportunities to pick up several ticks throughout the day. And the volume on the YM is growing rapidly. This move by the CME will put the NQ on par with YM in terms of number of ticks per day and price per tick. I think this is an effort to take back some of the volume that has found its way over to the YM contract. I know I'll take a second look at the NQ after this change. My 2