Tick size reduction for 5- and 30-Year U.S. Treasury contracts

Discussion in 'Financial Futures' started by BondTrader50, Jan 9, 2008.

  1. bighog

    bighog Guest

    they just doubled your commissions .., :p
  2. Just be glad they didn't go directly to decimal ticks.
  3. I'm not sure if this will help or hurt liquidity??? It may turn the 30 yr into the mini dow:eek:
  4. Especially if the E Speed/Paper new exchange works!
  5. Maybe traders will "avoid" the 1/64th ticks and do more volume on the 1/32nd ticks.
  6. I think the CME is nuts to even consider this change. If it ain't broke, don't fix it. The treasuries have been the CBOT's cash cow for years and now they risk butchering them in the face of new competition?

    This must have been music to the new exchange's ears. It will be next to impossible for the new exchange to take the needed liquidity from the CME. They need to have an extraordinary plan in place, otherwise they will be considered another EUREX US.
  7. Lucrum


  8. Any idea why they are reducing the tick size? Is this going to be the same as when Eurex halved the bobl tick in order for the algo traders to wipe out the locals? Now Eurex are scratching their heads and wondering why the volume has dropped.
    This strikes me as a really stupid move. Is this move simply to wrong foot the new competing exchange?
    Who on earth comes up with these ideas? Everyone will lose if it goes ahead.
  9. More revuene without increasing rates is the goal.

    I know, It's crazy.
    It's like going to Mcdonalds and ordering a hamburger and they hand you a half of one. You say "Hey where's the rest of my Burger. They say "Sorry Sir, but we now serve half burgers for the same price as the former full ones, come again soon!"
    #10     Jan 9, 2008