Russell 2000

Discussion in 'ETFs' started by algofy, Feb 4, 2017.

  1. algofy


    When this instrument comes back to the CME midyear, do you think it will trade similar to how it is trading now on ice?
  2. Why not just trade the EMD (midcap 400) that is already on CME.
  3. algofy


    I checked into that but very little volume. If I remember right it only traded 5-6k contracts.

    Do you trade it?
  4. wrbtrader


    I've traded the TF (formerly ER2) on both the CME and then the ICE.

    It was ruined (volatility got killed) on the ICE and now its coming back. Not important to be concern now about the Russell until it starts trading on the CME. Yet, I suspect those still trading but that stopped trading the Russell on the ICE due to problems with the volatility...they may return (e.g. me) to the Russell. I had switched from TF to ES when the price movement of TF became too problematic to trade when it moved to ICE.

    Overall trading "seems" to me to have changed dramatically since the U.S. presidential elections. Yet, I'm a little out of touch because I've only recently returned back to the markets after a long absence due to illness.

    Thus, I don't think it will trade similar to the way it was on the ICE nor will it move the way it was prior on the CME. Thus, its in a different market environment but I hope its price movement improves (more volatility) and the those concern with the fees...that will be lower considering its moving from ICE back to CME...many brokers charge a separate (additional) fee for access to ICE.

    Just dont get your hopes up that the price movement will improve...I think market conditions in the futures on the CME and ICE have really changed or maybe I'm having a harder time understanding the price action since I was sick.
    algofy likes this.
  5. algofy


    Actually looks like EMD trading closer to 20k contracts daily. What's the liquidity on the bid/ask look like?
  6. algofy


    Thanks for the reply, you fully recovered now?
  7. sbxems


    I exclusively trade the russell because ES whip saws drove me crazy. Tf to me is more structured. So I am worried how the move may affect the beautiful trending TF. I've tried trading Midcaps before but it's not the same. The chart and trend maybe similar but the moves are intense and fast. Hard to get out quick when it moves 10 ticks in a nanosecond.
    murray t turtle and algofy like this.
  8. southall


    It will trade more or less the same.

    However i got a feeling fees might go up, CME charge retail $1.17 for all their SIF products, where as ICE are charging around half that because they recently reduced the multiplier.

    I also sent a request to IB asking them to half their commissions on TF. They agreed. But they might not carry over the reduction if they see CME hasn't kept the reduced rate.

    I currently trade about 2500 contracts a year, so a doubling in the fee from the current $2 a round trip to $4 dollars a round trip will cost me an extra $5000 dollars. On the plus side, CME charge lower data fees than ICE, so thats a saving of $1000.

    Ideally CME will put the multipler back to 10! But they will make more money keeping it at 5 and charing fees inline with what they are charging for YM, which is also a 5 multiplier contract.
  9. algofy


    Thanks for your input, I forgot all about TF reducing their min price change to $5. I really dislike the trend of moving to the smaller tick sizes. I feel like 10 or 12.50 is a great number.
  10. sbxems


    I think the min price tick reduction is good for starting traders because they can now buy 2 lots with no fear because it would be the same as the previous tick price and in turn they will learn how to scale out, how important that is and potentially have the ability to learn how to manage trades. It's hard to be consistent trading 1 lot.
    #10     Feb 4, 2017