The weenies are coming!!

Discussion in 'Index Futures' started by tiddlywinks, Mar 11, 2019.

  1. I'm pretty sure the commissions will be adjusted like they are in micro lots for 6E GC etc
     
    #11     Mar 12, 2019
  2. SunTrader

    SunTrader

    What else ... hot and sticky.
     
    #12     Mar 12, 2019
  3. SunTrader

    SunTrader

    Most likely - if not the volume certainly won't be there. And don't know about you but volume is important to me and I would think most others as well.

    One simple and obvious reason - if the volume is not there the CME will shut them down.
     
    #13     Mar 12, 2019
  4. tiddlywinks

    tiddlywinks

    I think the products will do well, meaning there will be solid interest. No where near the volume of the larger counterparts, but solid.

    At 1/10 size, the margin requirements (even without intraday margin) will open up new participant groups. Commissions/fees (and intraday margins) are (mostly)broker dependent, but if administered properly, and assuming proper bid/ask tracking, solid interest will follow, I have no doubt. Since the tic increments are the same as the larger contracts, and only the value of the tic is different, I don't see bid/ask being an issue. OTOH fungibility can lead to arbitrage, which with frequency, would destroy the products for retail use.
     
    #14     Mar 12, 2019
  5. tiddlywinks

    tiddlywinks

    Thank you to @Robert Morse for this update, posted in a different thread.

    https://www.elitetrader.com/et/thre...ing-for-solutions.331240/page-14#post-4835641

    Yes, it's difficult to know what fee applies to any particular broker, but using the non-member tier "should" give a worst case.

    With that basis, I see .20c for both CME and CBOT products. Add in a commission for the broker and it's likely MNQ, M2K, and MYM will have at a minimum 2 tics per-side breakeven NET (4 tics minimum RT, NET). While MES may sneak in at 1 tic per-side breakeven NET (2 tics RT, NET).
     
    #15     Apr 3, 2019
  6. SunTrader

    SunTrader

    Equity Index Advisory

    Effective Sunday, May 5, 2019, for trade date Monday, May 6, 2019, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME”) and The Board of Trade of the City of Chicago, Inc. (“CBOT”) (collectively, the “Exchanges”) will list the Micro E-mini S&P 500 Index Futures, Micro E-mini Nasdaq-100 Index Futures, Micro E-mini Russell 2000 Index Futures and Micro E-mini Dow Jones Industrial Average Index Futures contracts (the “Contracts”) for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
     
    #16     Apr 3, 2019
  7. schweiz

    schweiz


    I saw somewhere $2.72 per RT in ES. But cannot find it anymore. That would be expensive.
     
    #17     Apr 3, 2019
  8. Seaweed

    Seaweed

    That really would be far too expensive. The contract is 1/10 the size, and the cost is even less than 1/2 as much. Then on top of this, you might get slippage depending on the volume.
     
    #18     Apr 3, 2019
    schweiz likes this.
  9. schweiz

    schweiz

    It would make it more difficult for starters then trading the ES, as the cost is percentage wise much higher. So better start with the ES then and not with the micro's. If the tick value is 10 times smaller, all the rest should be 10 times smaller too.
     
    #19     Apr 3, 2019
  10. about time this was talked about for years. i like this as i have stalled my brother in law for a year fearing he will blow up in days.
     
    #20     Apr 5, 2019