I predict they will have solid volume very quickly. Since the terms are the same as the mid month contract, there's no educational process to endure. Much of the existing volume is from CTA/CPO firms and other institutions who are hedging. Since everyone reports monthly, it makes sense to use a product that coincides with the reporting schedule.
After recent action I`m ready to jump in that market anytime. BTW - they are European. This comes from CME, so looks like IB is right this time. Well, we`ll see once they start being traded.
CME as usual remians t th eforefornt of trading/market products advancements. I've always dreamed of a product like this! My other dream is some kind of perpetual futures contract i.e. no expiration thus eliminating rolls and facilitating easier/more accurate backtesting. Kudos, CME!
Right, I`ve always had respect for the way CME is being managed. And no-roll future would be good idea as well, however no clue what political issue sleeps behind this project i.e. what is official "no" against it.
It's been a slow progression. Only a few quotes the first hour, then more but $7 - $8 spreads. Now we're down to $4 spreads but only 10 to a side. I expect the spreads to tighten as other MMs come in. Hopefully the CME has other MMs lined up to participate. I would think everyone running the regular expiry would participate in the EOM. I think the CME has done a poor job of getting the word out about the product. There is no press release that I have found and nothing on the front page of the website as of this morning. I only knew about it from the vendor doc annoucing specs and symbol testing, which is buried on the website. Despite the slow start, I expect this to get better every day.
Right. I`ve been actually quite surprised that such product has such poor advertising. Good news is however, that selling OTMs gives you about same results as for ES, so the catch is about longs but for buying we can still use old ES, can we ? Shorts may stay as they are European, and the rest might be hedged using old ES and futures.
The lone MM appears to have left for lunch...no quotes now. As for your question - I expect to use both ES and EW in the same manner. Assignment is never really a concern for me.
Oooops. But there are still some ATM quotes in size of 10 ? Actually, I don`t worry about assignment neither. I get worry about many things however when I come to some places on ET too often.LOL.