NYSE Euronext announced plans to launch a range of stock-index contracts, the exchange's latest move to elbow its way into the U.S. derivatives market. The parent of the New York Stock Exchange, known for its traditional stock-listing and trading businesses, has been expanding into the markets of commodities, stock indexes and options, which are dominated by Chicago Mercantile Exchange parent CME Group Inc. The new index futures, set to begin trading in the third quarter, will link to MSCI Inc.'s benchmarks for U.S. and European stock markets, as well as indexes tracking Brazil, Russia, India, China and other emerging markets. The MSCI products would compete with CME's stock futures based on Standard & Poor's and Dow Jones & Co. indexes. (Dow Jones, a unit of News Corp., publishes The Wall Street Journal.) "It's an upward battle" for NYSE, said Richard H. Repetto, principal at Sandler O'Neill & Partners. "They are going against an 800-pound gorilla." CME handles more than 90% of all futures trades in the U.S. Thomas Callahan, head of U.S. futures at NYSE Euronext, said the exchange doesn't anticipate that winning market share will be "easy and quick." Market participants have been calling for more price competition and new products, Mr. Callahan said. NYSE Euronext's distribution network and client relationships make it "well-positioned to be a viable competitor," he said. http://online.wsj.com/article/SB124335377095254803.html 800 pound gorilla ? LOL ! Just waiting that they launch this baby. When will CME finally come down with exchange fees ?
Just what US needs. More of the same gambling/speculation crap. Stop this gimmicky shit and start producing something real. Something that helps the country. US does not need more shit to trade in!
I totally agree. I'm giving up trading and looking into either distributing porn or cigarettes; buying a strawberry farm and employing some migrant farm laborers @ $.25/flat; opening a sweat, I mean textile shop to make t-shirts, or an industrial chemicals plant. I truly want to be a productive citizen.
Great news. I wonder what the pricing will be. I guess NYSE will be competing on price alone? This is be great news for big volume index futures traders. Hopefully it will all liquidity and not fragment the market though. Can someone copy/paste the whole article?
It is deja vu all over again. 30 years ago in 1979 the NYSE started the New York Futures Exchange (NYFE). We all know what a great success the NYFE is today.
I dont know though, wasn't 30 years ago it probly still a big advantage for Chicago pits to be physically closer to mid west farmland and physically shipping the ags over the great lakes? Thats obviously meaningless with electronic markets and financial futures.. Either way though this is great news...hopefully some of the foreign contracts really take off, would be great to have a nice state side based contract to trade at night EST time...I just can't get up at 4am to trade DAX.
Ummm, you do realize this site is called "Elitetrader" right? Like the elite of traders who like to trade and chomp at the bit for more things to trade. If that is the way you feel about trading why are you here?
If they compete on price AND tick size (there's no reason ES could not trade in 0.01 ticks rather than 0.25, although the SP pit guys wouldn't like it), they may garner interest.