Official DD thread - Big Dow

Discussion in 'Index Futures' started by dieselman8, Mar 19, 2006.

  1. sammybea

    sammybea

    Great point Pabst. The has been a failed attempt to attract big money from hedge funds and the like. Its much easier to hedge a 100 million portfolio in the ES rather than a retail contract like the YM. Now that the CBOT is public, they should be a little bit more aggressive in cleaning up this mess. Eliminating the CBOT Dow ($10) would be a start.
     
    #31     Mar 31, 2006
  2. RedDuke

    RedDuke

    DAX is another.

    Time will tell what happens to DD. When ES was launched, I believe it traded around 7,000 contracts per day.
     
    #32     Mar 31, 2006
  3. Pabst

    Pabst

    But the pit-traded SP was trading 75,000 a day at a 250x index value. In fact even with the immense success of electronically traded index futures, notional values in SP/ES have not tremendously increased from the pre-Globex days.

    I was in the Dow pit from day one in 1997 and know first hand the struggle narrow based indices (remember the MMI in the late 80's) undergo in attracting institutional usage. The CBOT should be thrilled that the YM has grown as much as it has. If up to me I've cut the baby in half by going 100x as a spec size(same as the DJ pit). In the same way, many would love to see ES go 100x and trade in dimes.
     
    #33     Mar 31, 2006
  4. alex104

    alex104

    this sucks im good for atleast 50 poins a week wish i could trade 10 big dows as opposed to mini:
     
    #34     May 9, 2006
  5. sammybea

    sammybea

    Exactly.. it seems like they set up some market making program so the spreads are exactly one tick WIDER than the bid AND offer on the YM. There simply is no incentive to trade the DD. I wouldn't even place limit orders due to the greater risk of a fill versus the YM.
     
    #35     May 9, 2006
  6. Hehe, I have almost forgot it exists... it is becoming extinct :p
     
    #36     Jun 14, 2006