I like trading the miniRussell on CME, but is anyone trading it on ICE? I'm curious of the volume and bid/ask spread (tight/wide?). I believe the miniRussell will be let go from CME September '08 and I'm just trying to think ahead. I hope it will be traded like it is on CME, it's a great trading contract. Anyway, anyone have feedback from trading the Russell on ICE? Thanks.
There is very little going through the ICE Russell complex at the moment. However, as you note, the ICE has acquired an exclusive license on the Russell products and will poach the index away from the CME next year. However, the CME has responded by listing a replacement in the form of futures on the S&P 600 small cap index. So it will be interesting to see if the Russell volume will move to the ICE, or if the CME will be able to hang onto it and transfer it to the SML. My guess is the volume switch will not be a gradual thing, but rather all at once around a rollover date... people will have to finally get out of their CME Russell for good and will have to decide where to move their positions.
the next best thing at cme is the sp midcap 400 mini. still too thin though. will be interesting to see what is actually going to happen - and when...
I wanted to start a thread just about this and found this one... I guess those who like to trade the emini Russell2000 are traders who love volatility on a somewhat wild index. Not as wild as the Dax or Hang Sang, but right below those. I was thinking of all those large traders who hold seats at the CME. They are not going to buy seats at the ICE only to continue trading ER2. I believe they'll find some other instrument to trade within the CME boundaries. The YM $10 contract could be a good replacement. The MidCap could also be a good replacement. Both these indices would need to pick on liquidity to welcome current ER2 traders.
Thanks for all the responses. I don't really care what contract it is, as long as it has the movement that the Russell has!